Bitcoin stabilizes at $41,000 pending US interest rate decision — AVAX overtakes Dogecoin | CoinDesk JAPAN

• Bitcoin has stabilized around $41,000 after the flash crash on the 11th.
• Many altcoins soared as Bitcoin stalled, with DOT, ATOM, INJ, and TIA among the top performers.
• Many market participants expect the Fed to pause rate hikes at the FOMC meeting on the 13th.

Bitcoin (BTC) has stabilized at around $41,000 (approximately 5,945,000 yen, equivalent to 145 yen to the dollar) ahead of the final US interest rate decision of the year to be held on the 12th and 13th. The massive leverage liquidation on the 12th and the largest daily drawdown since mid-August has been completed.

Bitcoin briefly recovered from the previous day’s low of $40,200 to $42,000 on the 12th, but fell to $40,600 by afternoon US time. It has since recovered slightly, and at the time of writing is trading at $41,300, up slightly by 0.3% in the past 24 hours.

Ethereum (ETH) fell 1% over the same period, falling below $2,200.

Altcoins soar

While Bitcoin and Ethereum’s momentum slowed, many altcoins soared on the 12th.

Polkadot (DOT), Cosmos (ATOM), and Injective (INJ) were the best performing among the major crypto assets (virtual currencies), rising 10% to 20% in the past 24 hours.

Avalanche (AVAX) rose nearly 5% on the 12th. It has more than doubled in value in one month, surpassing meme coin Dogecoin (DOGE) in market capitalization.

The recently launched blockchain data solution Celestia’s token TIA will become an option for blockchain builders spinning up new layer 2 networks on top of the Ethereum blockchain using Polygon’s software tools. After the announcement, the stock soared 20% to a new all-time high.

Venture capital-backed blockchain Aptos’ token APT also rose 16%, according to Token.Unlocks. Tokens worth $200 million (approximately 29 billion yen) were unlocked on the 12th, but there was no impact.

The CoinDesk Market Index (CMI), which measures the performance of the entire crypto asset market, rose 1.2% in the past 24 hours.

Expect the Fed to keep interest rates unchanged

The Federal Reserve (Federal Reserve System) announced at the Federal Open Market Committee (FOMC) meeting on the 13th that the consumer price index (CPI), an inflation indicator, had continued to decline slightly in November. is widely expected to remain unchanged at 5.25% to 5.5%.

“Disinflation is in full swing, and the latest CPI data for November 2023 will be Further evidence that the trend remains intact.”

The Fed will suspend interest rate hikes for the third time in a row on the 13th as inflation slows. At the same time, investors will be watching Fed Chairman Jerome Powell’s press conference for any signs of a possible rate cut next year.

“It is generally expected that a pause in rate hikes could be interpreted as a bullish signal to the market,” analysts at crypto exchange Bitfinex said in an email. “Crypto assets have historically experienced positive market movements following the Fed’s decision to keep interest rates on hold.”

｜Translation and editing: Rinan Hayashi
｜Image: CoinDesk
｜Original text: Bitcoin Halts at $41K as Traders Eye Fed Rate Decision; AVAX Flips Dogecoin as Altcoins Jump