Investors expect the interest rate to rise by 0.75 percentage points

Cryptocurrency prices continued to slide ahead of the Federal Reserve’s interest rate decision on Wednesday.

Bitcoin, the largest cryptocurrency, recently fell 3.5% to $21331, while ether fell 6.3% to $1121, according to CoinDesk data. The total market capitalization of all digital currencies has fallen to $913 billion, well below its November peak of $3 trillion, according to CoinMarketCap data.

The cryptocurrency market was sent into a tailspin Sunday night when Celsius, one of the largest cryptocurrency lenders, told users it was temporarily halting all withdrawals, exchanges and transfers between accounts due to severe market conditions. The company owns Lawyers appointed for restructuring To explore possible solutions to its escalating financial problems, the The Wall Street Journal reported on Tuesday.

“A lot of traders are waiting to see if the Fed can restore confidence in their ability to do their part in controlling inflation, which would give risky assets like bitcoin a lifeline here,” said Edward Moya, senior market analyst for Trading. Oanda company.

Some cryptocurrency stocks recovered from recent heavy losses early Wednesday. Coinbase, one of the largest cryptocurrency exchanges in the United States, is up 5.6%. The company, whose stock is down 84% since its initial public offering last year, announced that it Laying off 18% of its employees. Software intelligence firm MicroStrategy is up 8% after that drop by up to 25% Tuesday. It said MicroStrategy held 129,218 bitcoin, worth $5.9 billion, at the end of March.

Crypto mining stocks are seeing little relief, with Riot Blockchain and Marathon Digital Holdings down 1.7% and 0.9% in Wednesday’s trading.

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