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Alright, here’s the scoop on why Pi Network, Jasmy, Litecoin, Ethena, and a host of other alternative cryptocurrencies are experiencing a steep decline:
**Headline: Crypto Crash: Pi Network, Jasmy, LTC, Ethena, and Altcoins Tumble – Here’s the Explanation**
The digital currency arena is once again in negative territory this Tuesday, with all eyes fixed on the approaching Federal Reserve (FOMC) gathering. Market participants are anxious, awaiting the Fed’s course of action regarding borrowing costs.
Among the most significant decliners, Pi Network (PI), the click-to-earn digital asset that gained widespread popularity, has decreased by almost 13%. JasmyCoin (JASMY) is faring similarly, dropping 6%, whereas Litecoin (LTC) and Ethena (ENA) have lost more than 5%. Xpeng Shares Decline After Disappointing Q4 Loss Reduction Announcement
The total digital currency market capitalization has diminished by 1.70% recently, erasing over $1 trillion in valuation and stabilizing at $2.7 trillion. In the past 24 hours alone, over $227 million has been liquidated. Ouch!
It’s not limited to digital currencies alone. The equity market is also encountering strain. The tech-heavy Nasdaq 100 is down 350 points, and the Dow Jones Industrial Average has fallen 410 points. Prominent entities like Microsoft, Nvidia, Apple, and Tesla are all down by more than 1%.
**FOMC Anxieties: Why Jasmy, Pi Network, LTC, and Ethena Are Underperforming**
The primary catalyst for this market slump is the widespread anticipation of the Fed’s interest rate verdict. The two-day assembly is already in progress, with the pivotal declaration anticipated on Wednesday.
The majority anticipates the Fed to maintain its current level at 4.50%. Nevertheless, traders will be intensely scrutinizing the “dot plot,” which offers insights into when the Fed might commence reducing rates.
Digital currency and stock investors are optimistic that the recent sell-offs and escalating anxieties of an economic downturn will motivate certain Fed officials to embrace a more accommodating stance. A Fed “put” (implying the Fed intervenes to safeguard the market) could provide a substantial impetus for Bitcoin (BTC) and alternative digital currencies like Pi Network, Ethena, Jasmy, and Litecoin.
As one analyst conveyed to Bloomberg:
> “Persistent trade disputes and the enactment of levies introduce considerable ambiguity. Investors are keen to comprehend how these strategies might impact the Fed’s economic perspective, notably concerning inflation and growth projections.”
**In Summary:**
* **Fed Monitoring:** The market is apprehensive regarding the Fed’s forthcoming interest rate determination.
* **Altcoin Devastation:** Pi Network, Jasmy, Litecoin, and Ethena are among the most severely impacted.
* **Wider Decline:** Equities are also declining, indicating broader economic apprehensions.
* **Awaiting a Shift:** Investors are anticipating the Fed to signal a transition towards diminished rates to stimulate the market.
After a caution from notable expert and CryptoQuant creator Ki Young Ju suggesting the bull surge has concluded, Bitcoin along with other virtual currencies have decreased. He mentioned:
“For the previous several years, I’ve been requesting a bull marketplace even if the signs were in crucial form. I’m regretful to modify my perspective, although it nowadays appears we’re getting into a endure marketplace.”
On a high-quality observe, much like the marketplace’s response at the beginning of the COVID-19 pandemic, a greater tolerant function via way of means of the Federal Reserve ought to enhance Bitcoin and altcoins. At that point, virtual currencies at the beginning fell unexpectedly however rebounded strongly after the Fed reduce hobby charges sharply.
