WASHINGTON (dpa-AFX) - A weak sentiment prevails in the cryptocurrency markets ahead of the decision of the Federal Open Markets Committee, the first since the outbreak of the Middle East war. Markets digested the announcement from the U.S. Securities and Exchange Commission concerning definitions of cryptocurrencies as securities as well as the updates to the Middle East war.
The massive spike in crude oil prices over the past month, with Brent crude jumping 45 percent and WTI surging 42 percent has mellowed rate cut expectations from the Federal Reserve. The CME FedWatch tool that tracks the expectations of interest rate traders shows the likelihood of the Fed keeping rates steady in the current review at 98.9 percent. The probability of the Fed maintaining rates at the current level in the next review in April is also high at 96.9 percent. However, markets expect a 22-percent likelihood for the Fed to ease rates in the FOMC in June.
Alongside the Federal Open Market Committee, a summary of economic projections spanning the most likely outcomes for real gross domestic product growth, the unemployment rate, and inflation for each year from 2026 to 2028 and over the longer run is also expected to be unveiled. The projections for the year 2026 made in December 2025 had pegged the GDP growth at 2.3 percent and the unemployment rate at 4.4 percent. While the PCE inflation has been projected at 2.4 percent, the Core PCE inflation is expected to be 2.5 percent. With the Middle East war continuing unabated, all eyes are on the Fed's forward guidance on monetary policy as well as its projections about economic growth, unemployment and inflation.
Crypto market sentiment has also been swayed by the U.S. Security and Exchange Commission's announcement on Tuesday regarding classification of cryptocurrencies as well as the definition of cryptocurrencies as securities. The Commission has classified crypto assets into categories based on their characteristics, uses, and functions, and analyzed each category under the definition of 'security' under the federal securities laws. The classifications encompass digital commodities, digital collectibles, digital tools, stablecoins and digital securities. It also clarifies how U.S. securities laws should treat airdrops, protocol mining, protocol staking and the wrapping of non-security crypto assets.
The U.S. SEC has shared an informal guidance on how it would classify cryptocurrencies as securities, interpreting the definition of 'security' as applied to certain types of crypto assets and transactions involving crypto assets. The initiative is part of its efforts to provide greater clarity regarding the Commission's treatment of crypto assets under the federal securities laws.
The Commodity Futures Trading Commission also joined the interpretation to provide guidance that the CFTC would administer the Commodity Exchange Act consistent with the interpretation. It also clarified that 'non-security crypto assets' could meet the definition of 'commodity' under the Commodity Exchange Act.
Overall cryptocurrency market capitalization has decreased 0.07 percent in the past 24 hours to $2.53 trillion while the 24-hour trading volume recorded a decrease of more than 35 percent to $89 billion. Around 35 of the top 100 cryptocurrencies are trading with overnight losses of more than a percent whereas 13 are trading with overnight gains of more than a percent. Inflows to U.S.-listed Bitcoin and Ethereum Spot ETF products supported sentiment.
Bitcoin (BTC), the largest cryptocurrency is trading 0.02 percent lower at $73,986.48. The current price is around 41 percent below the all-time high of $126,198.07 recorded on October 7, 2025. The original cryptocurrency has gained 6.3 percent in the past week but is still saddled with losses of 15.5 percent till date in 2026. The 24-hour trading ranged between $74,872.98 and $73,444.23.
Bitcoin Spot ETF products in the U.S. witnessed net inflows steady at $199 million on Tuesday. Market leader iShares Bitcoin Trust ETF (IBIT) topped with net inflows of $169 million followed by Fidelity Wise origin Bitcoin Fund (FBTC) that recorded net inflows of $24 million.
Bitcoin is continuing in the 13th position in the global ranking of all assets as per market capitalization published by companiesmarketcap.com.
Ethereum (ETH) slipped 0.65 percent overnight as it traded at $2,315.18. The leading alternate coin is trading 53 percent below the all-time-high of $4,953.73 recorded on August 25, 2025.
Ethereum Spot ETF products in the U.S. witnessed net inflows rising to $138 million on Tuesday from $36 million on Monday. iShares Ethereum Trust ETF (ETHA) topped with inflows of $82 million followed by iShares Staked Ethereum Trust ETF (ETHB) that recorded inflows of $67 million. Fidelity Ethereum Fund (FETH) however recorded outflows of $36 million.
Meanwhile, Ethereum is continuing at the 57th position in the global ranking of all assets as per market capitalization published by companiesmarketcap.com.
4th ranked XRP (XRP) slipped 0.13 percent overnight and is currently trading at $1.51, around 61 percent below the all-time high of $3.84 touched on January 4, 2018.
5th ranked BNB (BNB) gained 0.44 percent overnight resulting in price increasing to $672.79. BNB is trading 51 percent below the all-time high of $1,370.55 touched on October 13, 2025.
The price of 7th ranked Solana (SOL) increased 0.23 percent overnight to $93.97. SOL's current price is around 68 percent below its all-time-high of $294.33 recorded on January 19, 2025.
TRON (TRX) ranked 8th overall gained 0.37 percent overnight and is currently changing hands at $0.3036. The trading price is 31 percent below the cryptocurrency's all-time high of $0.4407 recorded on December 4, 2024.
9th ranked Dogecoin (DOGE) slipped 1.1 percent overnight and is currently trading at $0.0993. DOGE is trading 87 percent below the peak price of $0.7376 recorded on May 8, 2021.
10th ranked Hyperliquid (HYPE) added 0.36 percent in the past 24 hours to trade at $41.45, around 30 percent below the all-time high of $59.39 recorded on September 18,2025.
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