Bitcoin
and other cryptocurrencies were falling Monday as traders positioned ahead of the Federal Reserve’s monetary-policy decision on Wednesday.
Bitcoin
has fallen 3.1% over the last 24 hours to $28,414. The drop marks a retreat from levels of close to $30,000 over the weekend for the largest cryptocurrency.
Analysts at J.P. Morgan noted that the average price of Bitcoin was up 15% in April from March, while the cryptocurrency was less volatile. Bitcoin’s annualized volatility was 40% in April, compared with 71% in March, they said in a research note.
Traders will be watching the outcome of the Fed’s monetary-policy meeting this week as a factor that could send Bitcoin either higher or lower. The 72% rally in Bitcoin prices this year has come amid expectations the Fed will be forced to loosen monetary policy, perhaps as soon as later this year, as the economy weakens.
“If the Fed indicates it’s not done raising rates, all bets are off for crypto and other risk assets. If the Fed suggests it’s done with rate hikes, it should galvanize the bulls and reignite the bull run,” wrote Antoni Trenchev, co-founder and managing partner of crypto lender Nexo, in a research note.
Beyond Bitcoin,
Ether
—the second-largest crypto—dropped more than 3% to around $1,841. Smaller cryptos or altcoins were weaker, with
Cardano
falling around 3% and
Polygon
down 2.6%.
Dogecoin
fell 3%.
Write to Adam Clark at adam.clark@barrons.com
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