Crypto Rollercoaster: Market Swings and FOMC Anticipation

Bitcoin is still grappling with the recent market downturn and has maintained a relatively stagnant position, hovering around the $41,000 mark.

Meanwhile, most alternative cryptocurrencies are experiencing losses, with SOL dipping below the $70 threshold and AVAX plummeting well below $40.

BTC Faces Challenges Ahead of FOMC Gathering

The leading cryptocurrency recently enjoyed a surge, reaching a peak of $44,700 on Saturday—the highest price it has seen in over a year and a half.

However, this upward momentum was abruptly halted as bears made their presence felt. The descent began on Monday, pushing the price below $41,000. Although there was a brief recovery, BTC resumed its downward trajectory, slipping just above $40,000 on Tuesday.

A quick rebound followed, pushing the price back up to $42,000. Even the November Consumer Price Index (CPI) figures in the US had minimal impact. Nevertheless, another retracement ensued, causing bitcoin to fall below the $41,000 threshold.

Currently, the cryptocurrency is trading slightly above this level. However, increased volatility is anticipated later today, coinciding with the conclusion of the US Federal Reserve's latest Federal Open Market Committee (FOMC) meeting for the year.

BTC's market capitalization has decreased to $805 billion, yet its dominance over alternative cryptocurrencies has regained some ground, standing at 52.2%.

BTCUSD. Source: TradingView

SOL and AVAX Enter the Red Zone

Avalanche's native token recently stood out as one of the top performers, surging by over 80% weekly and reaching a multi-month peak of over $40. Despite this, AVAX has experienced a 12% daily decline, now trading at $36.

Solana, another notable performer, has now slipped below $70 following a 7% daily drop. Ethereum, Ripple, Cardano, Dogecoin, Tron, Polkadot, Chainlink, and Polygon are also in the red over the past 24 hours.

Amid this widespread retracement, there are a few exceptions. ELF has surged by more than 13%, followed by FTT (6%), NEO (5%), and ATOM (5%).

However, the total cryptocurrency market cap has suffered a significant overnight decline of over $30 billion, plummeting to $1.540 trillion on CoinMarketCap.

Cryptocurrency Market Overview. Source: Quantify Crypto

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