The cryptocurrency market remains stable but is approaching a cautious phase ahead of the Federal Reserve’s upcoming meeting scheduled for September 16-17. Investors are on high alert for indications regarding monetary policy, leading to increased speculation about the best cryptocurrencies to invest in during this period.
Currently, Bitcoin (BTC) trades around $115,700, having briefly dipped below $115,000. According to the daily chart, Bitcoin has successfully reclaimed the crucial $112,000 support level and is now facing resistance at approximately $120,000. Analysts suggest that if Bitcoin breaks above this resistance, it could pave the way for a return toward $124,000. Conversely, a failure to maintain the $112,000 support could see BTC retesting levels around $108,000.
Ethereum (ETH) is also experiencing fluctuations, currently hovering above $4,600 following a minor decline. In the broader altcoin market, losses have been prevalent, particularly in sectors like GameFi, DeFi, and meme coins, which recorded losses of 3.03%, 2.21%, and 2.85%, respectively.
Several key macro and regulatory events on the horizon could significantly influence the next moves in the crypto space. The impending FOMC meeting is expected to set the tone for the market as it could lead to shifts in capital flows back into Bitcoin and other altcoins or potentially keep investors on the sidelines. Additionally, critical deadlines related to ETFs and policy developments surrounding stablecoins may further complicate market dynamics.
Arthur Hayes, co-founder of the cryptocurrency exchange BitMEX, has made headlines with his bullish outlook on Bitcoin. In a recent discussion, he suggested that Bitcoin’s price trajectory will be influenced more by global liquidity rather than the traditional four-year market cycle. Hayes believes that as central banks and governments continue to inject liquidity into the system through money printing and bond purchases, Bitcoin—and by extension, other risk assets—could become increasingly attractive compared to equities like the S&P 500. He estimates that this liquidity could drive Bitcoin’s price to considerably higher levels, potentially reaching $150,000, $175,000, or even $200,000 by the end of the decade. Despite acknowledging risks that may emerge later in the market cycle, Hayes maintains that significant upside potential has yet to be realized.
As investors navigate these complex market dynamics, the question of the best cryptocurrencies to buy in the current environment remains a focal point, underscoring the intersection of macroeconomic factors and the evolving landscape of digital assets.
