Cryptocurrencies have experienced a decline as market participants exercise caution ahead of the Federal Open Markets Committee’s interest rate decision, set to be revealed on today. Market participants are closely monitoring the rate cut decision alongside the implications of potential forward guidance. The upcoming labor market updates from the U.S. on Tuesday morning have heightened market anxiety, leading to a cautious stance regarding any significant event risk before the Fed’s decision. Reports indicates an 89.4 percent probability of a quarter percentage rate cut, which would reduce the target funds rate to 3.50-3.75 percent. This marks an increase from 86.2 percent just a day prior, 88 percent a week ago, and 66.9 percent a month ago. The anticipated likelihood of a subsequent decrease in rates to the range of 3.25-3.50 percent stands at just 21.8 percent for the January FOMC, 37 percent for the Fed’s decision in March, and 39.9 percent for the April FOMC. Amidst the uncertainty regarding the Fed’s plans for 2026, the sentiment in the crypto market continued to show weakness.
In a period of tepid trading activity leading up to the Fed’s decision, the total cryptocurrency market capitalization has seen a decline of 1.1 percent overnight, now standing at $3.08 trillion. The decline was accompanied by a drop of over 8 percent in the 24-hour trading volume, now sitting at $118 billion. Currently, 12 of the top 100 cryptocurrencies are experiencing overnight gains exceeding 1 percent, while 52 have seen declines of more than 1 percent. Bitcoin has experienced a decline of 1.6 percent over the last 24 hours, currently trading at $90,250.50. The present price sits approximately 28 percent beneath the all-time high of $126,198.07, which was noted on October 7. The original cryptocurrency has seen a 3.1 percent increase over the past week; however, it remains burdened by a 3.4 percent decline year-to-date. Ethereum experienced a decline of 1.3 percent overnight, now trading at $3,112.90. The prominent alternative cryptocurrency continues to trade 37 percent beneath its all-time high of $4,953.73 and is facing year-to-date losses of approximately 6.6 percent.
Bitcoin, the market leader, fluctuated between $92,099.35 and $89,586.98. Meanwhile, Ethereum, the leading alternative coin, saw a range of $3,174.83 to $3,083.34 in the same timeframe. Bitcoin holds the 9th position, while Ethereum is placed at 39th in the global asset rankings based on market capitalization, according to sources. The 4th ranked XRP experienced a decline of 1.4 percent overnight, bringing its current trading price down to $2.06. 5th ranked BNB experienced a decline of 2.8 percent overnight, bringing its price down to $883.45. The 7th ranked Solana experienced a decline of 4.5 percent overnight, now sitting at $132.39. TRON, currently ranked 8th overall, experienced a decline of 1.8 percent overnight and is now trading at $0.2805. Dogecoin, holding the 9th rank, saw a decline of 1.5 percent overnight and is presently trading at $0.1415. Cardano, currently holding the 10th rank, surged by 3.4 percent overnight, now trading at $0.4495.
In a notable overnight performance, Zcash, currently ranked 16th, led the way in gains among the top 100 cryptocurrencies, soaring by 11.4 percent. In the latest market movements, the 81st ranked SPX6900 managed to outperform its peers, despite facing overnight losses, recording a decline of 8.5 percent among the top 100 cryptocurrencies.