- Bitcoin price is hovering above the important support at $25,300.
- The Federal Reserve will deliver its interest rate decision later today.
- Most altcoins are sitting at their lowest levels since January.
Cryptocurrency prices remained in a consolidation phase, with Bitcoin being stuck above the important support of $25,300, which I wrote here. This consolidation is mostly because of ongoing regulatory concerns. Some coins like Tezos, Injective, Chainlink, and Uniswap drifted upwards in a low-volume environment.
Federal Reserve decision ahead
The biggest catalyst for the ongoing crypto price movement is the ongoing concerns about regulations. As we have written severally, the SEC decided to press charges against Coinbase and Binance. These suits led many investors to sell their coins.
The most recent data by DeFi Llama shows that the total assets in Binance have dropped by over $1.7 billion in the past seven days. The clean assets now stands at about $47 billion. Other exchanges like OKX, Bitfinex, and Crypto.com have seen inflows in this period.
The next key catalyst that could move these altcoin prices will be the upcoming interest rate decision by the Federal Reserve. This meeting comes a day after the US published encouraging consumer price data. According to the Bureau of Labor Statistics (BLS), the headline inflation dropped to 4.0% in May, the lowest level in more than a year.
Core inflation dropped slightly to 5.3%. Therefore, most analysts believe that the Fed will leave interest rates unchanged at 5.25%. The bank will use this pause to observe the trends in inflation. If it holds steadily above 2.0%, it will likely resume the hikes,
A pause will be a good thing for cryptocurrencies and stocks since this will be the first time in ten meetings for it to leave rates intact. Historically, cryptocurrencies tend to do well when the Fed is not hiking interest rates.
Tezos price prediction
Cryptocurrencies like Tezos, Injective, Chainlink, and Uniswap drifted upwards ahead of the decision. Despite this, most of them remain sharply below their year-to-date high. For example, Tezos was trading at $0.775, close to its highest level since January and about 47% below the year-to-date high. Tezos is below the 50-day and 25-day moving averages. Therefore, the outlook of the token is still bearish, with the next level to watch being at $0.50.
Read more: How to buy Tezos.
Chainlink price prediction
The same trend is happening with Chainlink, the biggest oracle network in the world. As shown below, the LINK price has been in a strong bearish trend in the past few months. It is now at an important support since this price coincides with the lowest point in January. Like Tezos, Chainlink has moved below all moving averages. Therefore, a strong move below this level will open the possibility of it dropping to $4.
Read more: How to buy Chainlink.
