Little movement in cryptos as they await the Fed and some positive news

Little movement in the cryptocurrency market. Bitcoin (BTC) drops moderately and remains near $29,200, while Ethereum (ETH) follows in its wake and threatens to lose $1,850.

Indefinition continues to define, if you will forgive the contradiction, the narrative of the digital asset market. With the momentum of spot Bitcoin exchange-traded funds (ETFs) from BlackRock and other players dissipating and the Ripple case ruling before the Securities and Exchange Commission (SEC), Bitcoin has found itself in no man's land.

Edward Moya, senior market analyst at OANDA, pointed out that the reigning cryptocurrency could be headed for $27,500 if the current bearish momentum builds. As such, the expert believes it will take "a fresh catalyst" to "excite Bitcoin traders," which is difficult at the moment. "It seems the price action is destined for a broadening formation, potentially targeting the $27,500 and $31,500 zone," he noted.

However, this thesis does not only apply to the reigning cryptocurrency. Most altcoins, especially those flagged by the SEC such as Cardano (ADA) or Solana (SOL), have lost the tailwind of the bullish rally of Ripple's native token, XRP, and are currently accumulating negative returns in the last 7 days.

One of the few to escape the downfall is Dogecoin (DOGE), which has continued to rise thanks to Elon Musk's revamped and cryptic Twiter (or 'X'). However, the dog-themed token has seen about $5 million in short positions liquidated in the last 24 hours versus about $3 million in long positions. Something similar to what has happened to Bitcoin and other major cryptos, which seems to indicate that the market expects a fall in the near future.

This could come as early as today, on Wednesday, if the Federal Reserve (Fed) does not say what the markets want to hear. The U.S. central bank is expected to "unleash the hawks" and raise interest rates by 25 basis points in what the market believes could be the last of the year, according to data from CME's FedWatch tool. Other experts, such as those at Rabobank, believe there will be at least one more. In contrast, there is some unanimity in thinking that the central bank will not make any cuts this year.