Bitcoin’s Struggle for $29k: How Interest Rates Affect Crypto Markets and Altcoin Stability

Ethereum & Bitcoin at pivotal points, altcoins stable, light dappling over digital coins, a race for dominance painted in Impressionist style, slightly cloudy sky, glowing data charts showing fluctuations, serene yet anticipatory mood in atmosphere, soft hues for peaceful market vibes.

After experiencing two days of declining prices, Bitcoin made a move hours ago, aiming for the $29,000 level. However, it was halted before reaching that point. Interestingly, altcoins, which are typically more volatile than Bitcoin, exhibited little-to-no movement during this period.

Over the past weekend, Bitcoin hovered mostly around $29,000, which was a welcome respite from the wild fluctuations seen earlier in the week, during which the asset’s value increased and decreased by $3,000 in just a day. As Sunday drew to a close, Bitcoin made another attempt to reach the $30,000 mark but was stopped in its tracks and dumped by almost $2,000 in a matter of hours.

The situation further deteriorated on Tuesday when Bitcoin’s value fell to a six-day low of $27,650. At that point, the bulls came to the rescue, quickly pushing the asset back up to $28,000. In the last 24 hours, Bitcoin saw another upward move but failed to overcome the $28,000 level, leaving it slightly short of that mark. Nonetheless, the 2% increase on the day has helped its market cap recover to $550 billion and maintain its 47% dominance over altcoins.

With the US Federal Reserve expected to raise interest rates once again, the market could see more volatility throughout the day. Historically, increases in interest rates have led to immediate price fluctuations in the digital currency market.

As for Ethereum and most other altcoins, they also experienced a downturn at the beginning of the week. Ethereum, the second-largest cryptocurrency, went from around $2,000 to $1,800. Fortunately, it managed to hold at that level and a modest daily increase has pushed it to just above $1,850 as of now.

Among the larger-cap altcoins, Polygon, Tron, Litecoin, Avalanche, and Shiba Inu have experienced slight downturns, while BNB, SOL, XRP, ADA, and DOGE have declined by minimal percentages. Even lower- and mid-cap altcoins have remained relatively stable, with Stacks standing out as the best performer, surging by 14% in a single day.

In summary, the total cryptocurrency market cap has recovered $15 billion within a day, placing the metric at $1.180 trillion. As the market faces continuous changes and the looming possibility of more fluctuations, it is essential for investors to keep a vigilant eye on the market and conduct their research before making any investment decisions.

Source: CryptoPotato

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