Bitcoin and other cryptocurrencies experienced mixed results on Tuesday as investors awaited the Federal Reserve’s interest-rate decision. There is growing speculation surrounding Dogecoin as traders debate whether Elon Musk will incorporate the token into his expansion plans for the X social media platform.
Bitcoin remained relatively unchanged over the past 24 hours, currently sitting at $29,171 with a 0.6% decrease. The leading cryptocurrency continues to trade within a narrow range with all eyes on the upcoming Fed decision set to take place on Wednesday.
According to Antoni Trenchev, managing partner of crypto lender Nexo, there is a possibility of Bitcoin dropping further to $25,000 while maintaining its upward trend since November. In the short term, a decline to $27,500 would not be surprising as investors analyze the outcome of the Federal Open Market Committee (FOMC) meeting.
In addition to Bitcoin, Ether, the second-largest cryptocurrency, saw a modest 0.7% increase reaching $1,857. Altcoins, including Cardano, also experienced gains with a 0.3% rise.
However, the standout performer is Dogecoin, which surged by 4.5%. This increase is fueled by hopes that Elon Musk will choose to integrate the cryptocurrency into his plans for expanding the X social media network, which is now known as Twitter’s new financial platform.
Rania Gule, an analyst at XS.com, highlighted the influence of Elon Musk on Dogecoin’s recent gains. Musk’s decision to temporarily make the Shiba Inu dog, representing Dogecoin, the main logo for Twitter’s homepage earlier this year contributed to a significant surge in the token’s price.
As we eagerly anticipate the Federal Reserve’s decision, all eyes are on Bitcoin and the potential implications it may have on the broader cryptocurrency market.