Crypto On Jan. 27: Market Turns Red As Fed Points To Upcoming Rate Hikes

The cryptocurrency market turned red Thursday following rate hike signals by Fed in its second meeting. The global market cap fell 2.62% to $1.63 trillion as of 2.46 a.m. ET.

The Federal Reserve indicated Wednesday that it could raise interest rates by mid-March as part of a broader tightening of its monetary policy.

Bitcoin, which was trading higher Wednesday, fell 3.02% to $36,233. Ethereum, too, slid 1.89% to $2,416, CoinMarketCap data showed.

Barring a slight uptick in Cardano price, all other tokens in the top 10 chart were trading lower.

Meme cryptos Shiba Inu and Dogecoin too plunged. The downturn is reinforcing concerns about a looming "crypto winter".

However, even with the market's muted performance this month, the sector is still attracting institutional investors, the CoinDCX research team opined.

"Most recently, crypto exchange FTX US drew funds from SoftBank and Temasek in its Series A, raising its valuation to $8 billion — an affirming sign of the industry’s long-term staying power," the Indian exchange told International Business Times.

In other news, Mark Zuckerberg’s ambitious project Diem is reportedly up for sale. As per reports, the Diem Association, which oversees the development of the Diem digital currency, is considering a sale of its assets, in order to return capital to its investors, amid mounting pressure.

The crypto market is extremely volatile and experts recommend investors not make decisions based on the sudden shift in prices.