According to CoinMarketCap, the cumulative capitalization of the cryptocurrency market has dropped below the $1 trillion level.

At the time of this writing, the indicator is around $983 billion. At the same time, the capitalization on CoinGecko is still over $1 trillion, an increase of 1.6% over the past day.

Currently, Bitcoin is holding around $21,420, Ethereum is above $1,460.

Earlier, Blofin analysts noted that the US stock market fell slightly while cryptocurrencies stopped falling.

“However, the next shock from the rate hike will be fed In July, just around the corner,” Blofin added.

1/9. The crypto market stopped its losses as the US stock market fell slightly today. However, the next shock of the Fed’s rate hike in July is looming. pic.twitter.com/4AGIMaRspC

— Blofin (@Blofin_Official) 27 July 2022

Analysts also noted the fear and greed index. According to them, the downward trend in the digital asset market is “relatively stable”.

5/9. The Crypto Market Fear and Greed Index rose slightly today. The index remained in the ‘fear’ zone. It seems that the bearish trend in the crypto market is relatively stable. @ResearchVariant pic.twitter.com/9GGir8SzCB

— Blofin (@Blofin_Official) 27 July 2022

It is assumed that at the next meeting, the Fed will raise the key rate by 75 basis points to 2.25%-2.5%. Now the indicator is at the level of 1.5-1.75.

In March 2022, the Fed increased it 25 basis points to 0.25–0.5% for the first time since December 2018. Then Bitcoin and S&P 500 showed growth.

Markets were surprised when the Fed increased the interest rate range to 0.75-1% per annum in May. Against this background, the price of the first cryptocurrency currently surpassed the $40,000 level, but fell below $36,000, the start of a long correction, on the same day.

In June, the Fed raised the key interest rate by 75 basis points to 1.5-1.75%. Bitcoin, which could not exceed the level of $ 30,000 with the news of accelerated annual inflation, reacted with growth.

Recall that Mike Novogratz, head of Galaxy Digital, admitted that the stagnation in the cryptocurrency market will last about 18 months. According to him, the industry will see the first signs of recovery after the Fed eases monetary policy.

Anticipating the 2007 mortgage crisis, investor Michael Burry predicted an ongoing decline in bitcoin price.

Read how the Fed rate affects the prices of the first cryptocurrency on ForkLog cards.

Read ForkLog bitcoin news in our Telegram – cryptocurrency news, courses and analysis.