The crypto market exhibited optimism on Wednesday, December 10 reflecting greens next to most cryptocurrencies. Ahead of the FOMC’s interest rate cut decision scheduled for later in the day, Bitcoin reflected a profit of 3.85 percent on the price chart. At the time of writing, BTC was trading at $92,575. Its seven-day price movement depicts a miniscule gain of 0.71 percent on Wednesday, indicating that the most expensive crypto has been volatile this past week.
Traders, on prediction market platforms, are betting on a possible 25 bps rate cut or at least a dovish policy tone. In conversation with Coin Headlines, market analysts said that a dovish signal from the Fed could trigger a liquidity-driven rally across the crypto market. Conversely, a hawkish stance may prompt short-term profit-taking.
“Crypto market is attempting to stabilise as Bitcoin trades near $92,000 after briefly climbing to $94,000 earlier today. The broader environment remains cautious but improving as traders position around the possibility of a rate cut. If macro conditions soften and liquidity begins to return, the current consolidation could evolve into a more constructive phase that draws buyers back into the market.,” Avinash Shekhar, co-founder and CEO of Pi42 told Coin Headlines.
Ether joined Bitcoin on the profit-side of the crypto chart. Having minted a profit of over 6.6 percent in the last 24 hours, ETH is presently trading at $3,318. The selling pressure has cooled and the market is no longer seeing the aggressive liquidations that defined the past few days, yet demand is still lagging as many traders wait for confirmation from the upcoming Fed rate decision.
“Ethereum’s rally is being driven by institutional accumulation and declining exchange reserves, as only 8.7 percent of ETH now sits on exchanges and staking inflows exceed 40,000 ETH daily. For now, sentiment remains cautiously optimistic, with Ethereum leading the market’s momentum into the FOMC event,” said Riya Sehgal, the Research Analyst at Delta Exchange.
Among crypto assets that are trading in the greens on Wednesday, Solana joined Dogecoin, Monero, Cardano, and Chainlink in reflecting price hikes within the range of five to nine percent. Zcash has continued to carve an upward trajectory this past month and is currently trading at $445.35 – having risen in price by over 12.5 percent over the last day. XRP, Avalanche, Hyperliquid, and Stellar also joined the profit-making tokens on the price charts.
Piggybacking on most altcoins trading in gains, the overall crypto market cap rose by 3.40 percent in the last 24 hours to claim the valuation of $3.16 trillion, showed data by CoinMarketCap.
The score of 30 on the Fear and Greed Index shows that investors are cautious, yet positive about a favourable decision from the Fed. The last rate cut of 25 basis points was announced in November that had brought the rate within the range of 3.75 percent to 4.00 percent.
Ahead of the Fed’s announcement, 112,505 traders were liquidated with the total liquidations hitting $419.06 million in the last 24 hours, shows data by CoinGlass.