![\"Bitcoin](\"https:\/\/zycrypto.com\/wp-content\/uploads\/2020\/04\/Bitcoin-Interest-Spikes-in-China-as-Traditional-Investment-Channels-Plunge.jpg\" "\\"Bitcoin")
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Despite struggling to keep its head above $22,800 on Sunday, Bitcoin plunged on Monday to as low as $21,400 during the Asian Market session as traders took a risk off-approach ahead of this week\u2019s interest rate decision by the FED.<\/p>\n
Mid-last week, the price managed to tap $24,300, recording a one-month high, before that bullish strength<\/a> was sapped towards the weekend. As of writing, the world\u2019s largest cryptocurrency by market capitalization had recovered to $21,831 despite a 2.81% drop in the past 24 hours.<\/p>\n Ethereum, the second largest crypto by market cap, also plunged by over 5% in the past day to trade at $1,513. Other cryptos that have dived at this week\u2019s start include (XRP), Cardano (ADA), Solana (SOL), and Dogecoin (DOGE), which are down, 4.56%, 7.40%, 5.57%, and 5.19% respectively according to data from CoinMarketCap.<\/p>\n The global crypto market cap has also receded to $1.01T after a 3.60% descent in the past day. Despite improving in the past thirty days, the fear and greed index remains in the fear territory, reflecting investor sentiments around factors that could potentially affect cryptocurrencies.<\/p>\n With the European Central Bank claiming the spotlight last week with a 50 basis points interest rate hike, this week, the U.S. central bank is also expected to hike by at least 75 basis points to tackle the ballooning inflation<\/a>.\u00a0<\/p>\n
On Wednesday, the U.S. central bank\u2019s Federal Open Markets Committee (FOMC) is expected to issue a statement, followed by a press conference by Fed Chair Jeremy Powell. This week\u2019s events are key as they will enable investors to gauge if the rate hike, as well as other forward-looking plans by the Fed, will plunge financial markets further or become a major driver of a global recession.<\/p>\n Overall, markets haven\u2019t improved since June\u2019s meeting, and investors remain worried that this week\u2019s FOMC announcement could plunge Bitcoin and other cryptos further.<\/p>\n \u201cData since has told that inflation continues to run hot and that the US employment market is holding strong. The fed can and will keep pushing until something breaks.\u201d<\/em> Tedtalksmacro wrote.<\/p>\n Despite BTC\u2019s fundamentals improving in the past few weeks, experts warn that the price could get shaken in the short term, with its most important support of $22,000 facing the risk of being taken out.\u00a0\u201cPrice Predictions,\u201d a website specializing in crypto, forecasts that Bitcoin could fall to a minimum price of $21,420 in July while averaging $23,628 as the month closes.<\/p>\nFOMC Meeting<\/strong><\/h2>\n
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