Bitcoin Retakes $21,000 Ahead of FOMC Interest Rate Announcement (Market Watch)

After yesterday’s drop below $21,000, bitcoin regained some traction and regained that level. Most altcoins have also turned green today, with MATIC and Ethereum Classic standing out as the most impressive performers.

Bitcoin at $21K ahead of FOMC meeting

After last week’s multi-month high above $24,000, the primary cryptocurrency began to head south on the news that Tesla had sold most of its BTC holdings in Q2.

Despite making back some ground early on and entering the weekend at nearly $23,000, the bears were in control and drove the asset back down. The first major price drop came on Monday morning when bitcoin fell to $22,000.

The same scenario repeated itself on Tuesday as the cryptocurrency fell below $21,000 to mark a weekly low. BTC reacted well to this drop, at least for now, and currently stands a few hundred dollars above that line.

However, the asset is most likely to experience increased volatility later today as the Fed is expected to raise interest rates again, with some suggesting a more extreme hike.

MATIC, ETC Lead The Way

The altcoins have also gone back a bit in the last few days, but most have started to recover now.
Ethereum went from over $1,600 to under $1,400 in two days. Now, however, the second largest crypto is near $1,500 after a daily gain of 4%.

BNB has recovered $250 by increasing by a similar percentage. Although more modest, Ripple, Cardano, Solana, Dogecoin and Polkadot are also in the green on a 24-hour scale.

Polygon has emerged as the most significant winner from the larger companies. MATIC is up 9% in a day and is above $0.8.

Ethereum Classic, on the other hand, is the best performer from the mid-cap alts. A 15% increase has brought ETC to $27.

The crypto market capitalization has added around $30 billion in a day, but is still struggling below the coveted $1 trillion mark.