Bitcoin, Ethereum and XRP Slightly Gain Ahead of U.S. FOMC Rate Decision

Bitcoin, Ethereum, and XRP saw slight gains on Wednesday as traders prepare for the U.S. FOMC rate decision at 2 PM ET. Unlike previous bear markets, shorter bear cycles are now followed by sharp price rallies.

The upcoming FOMC meeting may increase volatility for these leading cryptocurrencies, potentially providing buy-the-dip opportunities or chances for traders to take profits amidst a prolonged bear market.

Table of Contents

• Bitcoin, Ethereum and XRP Trader Sentiment Turns Risk-Off
• BTC, ETH, XRP On-Chain Analysis
• Trump Push and FOMC Rate Decision
• Bitcoin Eyes Return to $87,000, Ethereum Could Climb to $2,100
• XRP Price Forecast

Bitcoin, Ethereum and XRP Trader Sentiment Turns Risk-Off

In the last 24 hours, Bitcoin (BTC), Ethereum (ETH), and XRP (XRP) traders have reduced their activity in the derivatives market. According to Coinglass, BTC and ETH trade volumes fell nearly 11% and 7%, respectively, while XRP’s volume decreased by approximately 14%.

The sentiment shifted to risk-averse as nearly $89 million in liquidations occurred among these top three cryptocurrencies. Meanwhile, Open Interest, the total value of all open contracts, increased by 1.42%, 4.90%, and 1.49% for BTC, ETH, and XRP, respectively.

BTC, ETH, XRP On-Chain Analysis

On-chain data from Santiment shows that the Binance funding rate for Bitcoin has been positive for three consecutive days. It indicates that derivatives traders expect Bitcoin’s price to rise, despite their reduced trading activity.

Ethereum supply held by whales remains stable, while Bitcoin supply held by funds has been consistently decreasing. Active XRP addresses increased on Wednesday after a dip on Tuesday, suggesting mixed signals. Overall, the outlook appears slightly bullish for Bitcoin and XRP while Ethereum may maintain stability during the upcoming volatility.

Trump Push and FOMC Rate Decision

Bitget CEO Gracy Chen noted that Trump’s pro-crypto stance is leaving traders puzzled. The concept of a U.S. strategic Bitcoin reserve is gaining traction, and while it isn’t a reality yet, it could be on the horizon.

Chen also commented on a recent stablecoin bill passing through Congress, indicating a shift toward a blockchain-based financial system. He predicts Bitcoin’s price will not drop below $70,000 and could reach between $73,000 and $78,000, making it a favorable buying opportunity.

The FOMC meeting is expected to bring volatility, with predictions of Bitcoin trading between $80,000 and $86,000 post-meeting while Ethereum may fluctuate between $1,800 and $2,100.

Bitcoin Eyes Return to $87,000, Ethereum Could Climb to $2,100

Bitcoin is showing signs of recovery, currently trading at $83,517 and could potentially reach $87,000. Technical indicators suggest positive momentum.

Ethereum has gained 2.39% recently and aims to retest the crucial $2,000 level, with a target of $2,100.

XRP Price Forecast

XRP could see a near 7% rally, testing resistance around $0.2707. Both RSI and MACD indicate bullish momentum. Traders are monitoring developments related to the ongoing lawsuit against Ripple and Trump’s recent executive order regarding Strategic Reserve inclusion.

Disclosure: This article is for educational purposes only and does not constitute investment advice.