Fed policy and crumbling market sentiment could send the total crypto market cap back under $1T

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Crypto under a trillion? Yikes.

The total crypto capitalization closed July 24 at $1.03 trillion, a modest 0.5% negative seven-day movement. The apparent stability is biased toward the flat performance of BTC and Ether and the $150 billion value of stablecoins. The broader data hides the fact that seven out of the top-80 coins dropped 9% or more in the period.

The Federal Reserve policy meeting is scheduled for July 26 and 27, and investors expect the United States central bank to raise interest rates by 75 basis points. Moreover, the second quarter of U.S. gross domestic product – the broadest measure of economic activity — will be released on July 27.Investors sentiment improved from July 18, as reflected in the

Solana corrected 9% after the demand for the smart contract network could be negatively impacted by Ethereum's upcoming migration to a proof-of-stake consensus.The OKX Tether premium is a good gauge of China-based retail crypto trader demand. It measures the difference between China-based peer-to-peer trades and the United States dollar.

 

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