Cryptocurrency market analysts have identified the main reasons for the sharp decline in major cryptocurrencies

Last night, on December 12, the cryptocurrency market suffered a drop — the regression occurred amid expectations of the Fed’s decision on the US interest rate.

It is expected that the Federal Reserve will maintain the current range of federal funds rates at 5.25%-5.5% after the end of the Federal Open Market Committee (FOMC) meeting. The decision may be made against the backdrop of a gradual decline in the consumer price index (CPI) in November.

Over the past 24 hours, the global crypto market capitalization has reached $ 1.5 trillion, which is 0.59% less than a day ago. In the light of the news, popular crypto experts have commented on the future of the crypto market and the flagship crypto asset.

According to Michael Van de Poppe, bitcoin BTC $56,416.10 Bitcoin -1.81% Market capitalization $1.11 trillion VOL. 24 hours $4.33 billion is currently undergoing a correction, and it is also affecting other altcoins on the market. «This is a standard pattern before the FOMC meeting, and I suspect we will see a rebound in the next 24 hours and continue to move higher. However, the main focus will be on the Ethereum network, as it is in a state of rotation.»

In turn, Altcoin Sherpa suggests that after a sudden rebound, bitcoin may continue to move downward. Although the analyst claims that the pullback is not over yet, he believes that bitcoin «still looks bullish» when viewed on longer-term time frames:

«This could be a 'test reset' and the price could certainly take another step down. It is better if some bids are lower than you think. The market is still very bullish, not expecting a breakout (yet)…»

As for the short-term outlook, the analyst predicts that the BTC price is likely to decline gradually on short time frames. However, Altcoin Sherpa emphasizes that this «small setback» should be viewed in the context of the overall movement of bitcoin, which is relatively minor:

«If this happens, we’re not dead yet, but we’ll just cool off for a month or so. I expected something like this. Usually, it goes strong movement → month of cooling → next step up. If we fall, then consolidate, then in January, in my opinion, we will go up again. Be careful.»