Fear spreads among cryptocurrency investors as they brace for the upcoming Federal Reserve decision on interest rates. The widely-watched crypto fear and greed index has plummeted from the extreme greed zone above 80 to a neutral level of 58.
This shift in market sentiment coincides with Bitcoin’s price remaining trapped in a tight range between $70,000 and $60,000. At the same time, popular altcoins like Solana, Avalanche (AVAX), and Cronos (CRO) have experienced sharp declines. However, there is a silver lining: BitBot, a promising new project, has raised over $3 million in its token sale.
Looming Fed Decision Fuels Uncertainty
Bitcoin and other cryptos plunged as investors await the Federal Reserve decision and what it brings to the market. Economists believe the central bank might keep its hawkish tone at this meeting as inflation still refuses to give up.
According to the latest information, the headline Consumer Price Index (CPI) increased 3.5% month-on-month, while the core CPI increased to 3.8%. Additionally, the report last week spoke of PCE increasing to 2.5%, while the core PCE rose to 2.8%.
Thus, the figures imply that inflation is still much higher than the Federal Reserve goal of 2.0%. In addition, the signs indicate that inflation will likely stay high as oil prices and industrial metals are up. Also, the cost of vital services, including rent and insurance, has risen over the past few weeks.
As a result, the Federal Reserve will indicate it will maintain the higher interest rates for longer. Traditionally, Bitcoin, Solana, and Avalanche, known as risky assets, usually experience declines when the Federal Reserve uses a hawkish policy, as it commonly results in a stronger US dollar.
BitBot Token Sale Garners Strong Interest
Meanwhile, BitBot, a promising new project, has continued its token sale, raising over $3 million, indicating robust demand for newer cryptocurrencies.
BitBot is a platform aiming to disrupt the trading and investing industry by developing a trading bot that utilizes technical analysis and artificial intelligence (AI) to help traders execute profitable trades. The bot will be distributed through Telegram, an app used by over 900 million users monthly. This taps into a rapidly growing industry that has facilitated over $19 billion in trades and generated over $100 million in revenue for developers.
BitBot aims to address several challenges in the trading bot market. Firstly, the developers aim to make it more profitable than existing bots by leveraging artificial intelligence and other cutting-edge technologies. Additionally, BitBot intends to be faster than competitors by utilizing custom RPC nodes and institutional infrastructure. The network also emphasizes strong security features by being non-custodial, ensuring users control their funds.
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Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.
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