Market Wrap: Uniswap, Federal Reserve in Focus as Dogecoin Rests

Price Action

Bitcoin (BTC) held steady during U.S. trading hours, gaining 0.3%, even as the Standard & Poor’s 500 Index slipped.

Crypto traders are looking ahead to the next big economic event, the Federal Reserve’s monetary policy decision due out Wednesday at 2 p.m. ET.

“Personally I’m not ready to 100% call a bottom here yet, as I would like to see exactly how the economy reacts in the fourth quarter to a 3% to 4% federal funds rate,” Nick Mancini, director of research at Trade the Chain, told CoinDesk TV.

One thing that may or may not be discussed but should be: As speculation mounts over when the Federal Reserve might pivot dovish, some economists, including former U.S. Treasury Secretary Lawrence Summers, are warning that any such move might lead to weakness in the U.S. dollar versus other global currencies. That, in turn, could drive up prices for imports – possibly frustrating the Fed’s primary goal of bringing down inflation.

The CoinDesk Market Index rose 0.1%. Dogecoin (DOGE), the biggest gainer in October when its price doubled, slipped 0.5% on the first day of the new month.

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Technical Take

Money Supply Growth Is Falling, an Encouraging Sign for Fed Progress

By Glenn Williams Jr

Crypto observers hoping for a more dovish turn in monetary policy may look optimistically at a percentage decline in the M2 money supply growth from a year ago.

The parabolic increase in U.S. money supply during 2020 is largely behind the current inflationary environment. The reduced supply growth could be evidence that recent Federal Reserve measures are working.

Bitcoin and ether were trading sideways on Tuesday, albeit slightly to the green, a day ahead of the Federal Open Market Committee’s latest interest rate decision.

Read the full crypto markets analysis here.

Altcoin Roundup

• Elon Musk Tweet Sparks Flurry of Twitter-Themed Dogecoin Tokens: A new class of Shiba Inu-inspired tokens was birthed on BNB Chain and Ethereum Tuesday following a related tweet by technology billionaire Elon Musk. The price of over 67 of such tokens dropped more than 90% following their issuance, on-chain data shows. Read more here.
• Uniswap Surpasses Bitcoin as Fed Rate Hike Decision Nears: Uniswap is a decentralized crypto exchange (DEX) that runs on the Ethereum blockchain. Its native token UNI was recently up 5.1% over the past 24 hours and has risen more than 10% during the past week. Read more here.

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