Crypto Market Faces Pressure for Second Day as Investors Await Fed Rate Decision

The cryptocurrency market continued its decline on Tuesday, extending Monday’s losses, as investors await the Federal Reserve’s interest rate decision expected tomorrow.

Bitcoin (BTC) remained relatively flat, hovering around $94,000, while Ethereum (ETH) fell 2% to approximately $1,770. XRP and Solana also declined, each dropping nearly 1% to $2.11 and $143, respectively. One notable standout among altcoins includes Maple Finance’s SYRUP token, which surged 40% after being listed on Binance, according to CoinGecko.

The total cryptocurrency market capitalization dropped by about 2% over the past 24 hours to $3.03 trillion, while leveraged liquidations reached $215 million, according to CoinGlass. Ethereum (ETH) led the liquidations with approximately $48 million, followed by altcoins at $40 million and Bitcoin (BTC) at $38 million.

Macroeconomic Uncertainty

Experts attribute Tuesday’s market volatility to investor uncertainty ahead of the Fed decision. The U.S central bank is widely expected to leave rates unchanged, despite pressure from President Donald Trump for lower rates.

“[Today’s] muted price action suggests that markets are not pricing in any major surprises from today’s FOMC meeting,” said Paul Howard, Senior Director at Wincent. “Over the past week, Bitcoin has traded in a narrow range, further reinforcing the expectation of a status-quo outcome.”

Howard echoed that markets appear positioned for a delta-neutral outcome, with continued sideways momentum likely. “This reflects confidence in the current macroeconomic backdrop, as recent U.S. data shows consistent trends in employment and inflation – a stark contrast to the heightened volatility observed in February and March,” he said.

Wincent also pointed to the CBOE Volatility Index (VIX), which has declined from 55 to 25 over the past two months. Typically, a VIX reading below 18 signals a “risk-on” environment, favoring risk assets such as stocks and crypto. If volatility continues to trend lower, upward momentum in crypto prices could follow, he noted.