Market Wrap: Cryptocurrencies Stabilize as Traders Await the Fed

Market Wrap: Cryptocurrencies Stabilize as Traders Await the Fed

Bitcoin traded in a tight range around $46,000 on Tuesday. Some traders prefer to remain on the sideline until the U.S. Federal Reserve concludes its two-day monetary policy meeting on Wednesday, which could be a source of market volatility.

Despite relative calm in crypto markets, equities traded lower as the CBOE Volatility Index (VIX) remained elevated around the 20 level. It appears that investors are in no rush to increase their risk exposure ahead of any Fed announcement out of the meeting.

Also, economic headwinds continue to linger. “The failure of inflation to recede as anticipated will put central banks in a more aggressive tightening stance, causing a sharply negative reaction in financial markets and most likely a significant economic recession,” Deutsche Bank warned in a Tuesday report.