Key Takeaways:
- Bitcoin, Ether and major cryptos turn lower on Monday as mood shifts
- Traders anticipate the Federal Reserve’s final meeting of 2021 packed with key updates
What’s Today’s News in Crypto?
Bitcoin and the cryptocurrency market retreated on Monday after a weekend of solid gains defined the nascent asset class. The price of bitcoin fell about 6% on Monday to reach a closing level of $46,750 per coin. Also, the Ethereum token declined about 10% yesterday to hit a session low of $3,660 apiece.
Over the weekend, however, major crypto assets saw increased buying momentum with gains of 5% or more. As a result, bitcoin’s price notched a Sunday high of $50,750. Ether, the second-largest token by market value, almost reached $4,200 late on Sunday.
Tuesday morning is so far benefitting the cryptocurrency market. This said, the original cryptocurrency is aiming to stage a comeback as price has reversed the downward course. In detail, the orange coin is presently trading at $47,700, up about $1,000, or 2%, on the day.
The Ethereum network’s native token is also pushing higher today. Its price has gained about 3% to trade at levels near $3,800. For comparison, Ether slipped to a Tuesday bottom of $3,683 earlier in the session.
What’s the Price of Bitcoin?
The markets appear to be holding their breath in anticipation of the final meeting of the US Federal Reserve. Largely responsible for the direction of financial markets, the US central bank meets to discuss how to deal with current economic challenges.
In that context, traders and investors globally will be watching the press conference by Chairman Jerome Powell on Wednesday. In it, Mr. Powell could surprise the market by unexpected announcements. In turn, this could impact the prices of major tokens, which recently have been reacting to economic news.
Inflation pressures, for example, are increasingly affecting crypto prices. Bitcoin, in particular, is seen as a hedge against inflation, and therefore is susceptible to inflation reports.
What is the Future of Cryptocurrency?
In other news, Elon Musk, who was just named TIME Magazine’s Person of 2021, shared fresh remarks on bitcoin and crypto.
“There are advantages with crypto relative to fiat in that fiat currency tends to get diluted by whatever government it is,” Mr. Musk told TIME. Further, he noted that bitcoin serves as a great “store of value.”
This said, Elon Musk, the Tesla chief executive, has played a significant role in shaping the cryptocurrency market this year. The richest man on earth, with a fortune of over $250 billion, is expected to remain involved in the fast-developing crypto space as we move into 2022.
In conclusion, the future of cryptocurrency stays bright with many flocking to the digital asset market to buy the dip.