Bitcoin, Ethereum are trading lower ahead of Fed rate hike

On Wednesday night, the global market cap fell 1.8% to $841.15 billion, as it was 7: 21 p.m. EST.

It matters: Ahead of an expected 50 basis point rate hike by the U.S. Federal Reserve, risk assets came under pressure from nervous investors worried about a looming recession.

The U.S. stock futures traded largely unchanged at the time of writing, while Bitcoin andEthereum were seen trading lower.

The week of jobless claims numbers on Thursday and a slew of corporate earnings data on the same day will keep investors watch out for.

Risk appetite fades away on recession worries, so the price of digital currency is down. Edward Moya, a senior market analyst at OANDA said thatBitcoin has massive resistance at the $17,500 level and should hold up to the FOMC decision next week.

It could be possible to trade in ranges that might support only intra-day volumes. Long-term bets that are waiting to be placed will require a bullish fundamental trigger or a capitulation moment that has Bitcoin testing a key technical level. Micha l van de Poppe noted the mega moves by the apex coin. The trader said he can't wait for the breakout to $16,950 level.

Whales and shark investors are piling onEthereum to their reserves as the second-largest coin price fluctuates, said Santiment.

Key shark and whale addresses, holding 100 to 1 million ETH, own two-thirds of Ethereum's overall supply, according to the market intelligence platform. They added 2.1% more collective coins to their stocks in the past month.

Dan Lim, an analyst withCryptoQuant, said that the unpent transaction output UTXO volume, estimated to have been purchased 1 week to 1 month, increased sharply for the first time in the current bear market.

In the past, Lim cited three occasions - the bear market of 2015, the 2018 bear market and the current bear market - when this movement took place at the bottom.

It took 1358 days in 2018 and 1444 days in 2022 to make this movement, according to the analyst.

The amount of digital currency that remains after a transaction of a criptocurrency is called UTXO. It is the equivalent of change in the world of criptocurrencies.

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