The Great Crypto Tango: DOGE and XRP Twirl Down as Bitcoin Stares at the Fed’s Show

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What to know:

  • The crypto market was about as lively as a dry lakebed on Tuesday, with major tokens like dogecoin and XRP limping away with modest losses.
  • Bitcoin traders, bless their hopeful hearts, are keeping a keen eye on the Federal Open Market Committee (FOMC) meeting scheduled for Wednesday, praying it won’t send them running for the hills.
  • Analysts, those brave souls who gaze into the economic crystal ball, suggest a dovish signal from the Fed could set off a wild Bitcoin party, possibly even lifting the altcoins out of their cozy slump.

On Tuesday, the crypto market took a dip, resembling a tired dog flopping down for a nap, with dogecoin (DOGE) and XRP leading the way down, both grumbling about a 3% loss in the past 24 hours. The CoinDesk 20 Index (CD20)—a fancy name for the broader crypto scene—slipped 2%, much like your favorite pair of socks in the dryer.

The lack of excitement is palpable as Bitcoin (BTC) fans brace themselves for the FOMC meeting on Wednesday, a gathering that might just decide whether the sun will shine or whether we’ll need umbrellas to shield ourselves from raining finances.

The Federal Reserve’s trump card decision on interest rates—predicted to sit pretty at 4.25%–4.50%—could sway investor sentiments faster than a cat can knock a glass off the table. If Chairman Jerome Powell sends out hawkish vibes, expect Bitcoin to crumble like a cheap piece of pastry.

But should he sprinkle some dovish fairy dust about easing rates, we might just see a “Hallelujah!” rally erupt across the dusty plains of altcoins.

“A rate cut this Wednesday seems as likely as my cat learning to fetch. The U.S. is pulling a 180 from fiscal extravagance towards the ominous sound of deficit reduction,” quipped traders from QCP Capital in a message that certainly left no room for boredom. “Still, if Powell waves a little dove-wand, we could see some upward hysteria.”

Traders also pointed out, with a hint of sarcastic camaraderie, that capital might just be playing hopscotch out of Trump-induced trades like NASDAQ and Bitcoin and into markets long neglected, like those lush fields of Europe and China. Historically, crypto prices follow global liquidity conditions like a faithful puppy trailing its master.

Agne Linge of WeFi noted that market volatility resembled a tambourine in a rock band—unsettled and uptight. The crypto fear and greed index languished at a chilling 22, indicating “extreme fear,” as investors grapple with the joys of inflation, trade wars, and geopolitical shenanigans.

Last week, as if on cue, the S&P 500 and Nasdaq Composite staggered into their fourth consecutive weekly decline, while the Dow Jones took a dramatic plunge of 3.1%—a real gasp-worthy performance for the record books. With a previous week’s drawdown leaving a bad taste, the uncertainty looming like a rain cloud hints that more storms may be on their way.

At Bitget Research, chief analyst Ryan Lee remarked that Bitcoin was stuck in a tight embrace, with a dance toward $75,000 or $90,000 equally tantalizing, all depending on how traders decide to shimmy after the U.S. rate decision.

“Bitcoin’s recent backslide has everyone anxiously eyeing those important support levels between $82,000 and $85,000. It’s a classic post-rally cooling-off period— healthy, but testing if this momentum has the endurance of a marathon runner,” Lee said in an email to CoinDesk. “Unexpected FOMC shenanigans could throw a serious monkey wrench into the market.”

“Should the mood turn sour, we might see Bitcoin slide down to the $75,000–$80,000 range. However, if the atmosphere turns bullish like a summer barbecue, we could see it soaring back to $90,000,” he added with a glimmer of optimism.

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2025-03-18 16:02