"In any case, investors have to wait for the Fed's decision tomorrow, don't act recklessly."
Following the view that the Federal Reserve (Fed) of the United States (US) will continue to tighten monetary policy, the price of the cryptocurrency Bitcoin (BTC) plunged 4.4% to $22,836 in the last 24 hours and Ethereum (ETH) was down 6%.
However, before this, the majority saw the Fed will raise interest rates more slowly, by only 25 basis points at the meeting in early February.
The uncertainty has had a negative impact on the crypto market and disrupted the previously positive momentum of major cryptocurrencies.
Some experts think that BTC is capable of plunging again even though in the last 30 days its price has jumped by 37%.
In addition to BTC and ETH, Solana (SOL) was among the most affected digital assets as it fell by 10% at the $23.92 price zone followed by the S&P500 shares which slipped 1.1% and the Nasdaq plunged 1.7%.
This is because most investors have sold their risky assets such as BTC after there were expectations that the Fed might continue aggressive monetary policy to control US inflation.
Last year, investors were found to be more interested in the US dollar than BTC or technology stocks after the Fed raised interest rates seven times.
Explained further, the Fed raised interest rates by 75 basis points four times in a row but then began to slow slightly to 50 basis points at the meeting late last year.
The streak, analysts predict the Fed will raise interest rates by 25 basis points at the Federal Open Market Committee (FOMC) meeting early Thursday morning, but some analysts believe that a 50 basis point increase is possible.
