Factors Contributing to the Decrease in Popularity of Pi Network, Jasmy, LTC, Ethena, and Other Altcoins

Cryptocurrency prices continued their decline on Tuesday as traders anticipated the second interest rate decision from the Federal Reserve this year.

Among the biggest losers was Pi Network (PI), which saw a nearly 13% drop. JasmyCoin (JASMY) decreased by 6%, while Litecoin (LTC) and Ethena (ENA) both fell by over 5%.

The overall market capitalization of all cryptocurrencies decreased by 1.70% to $2.7 trillion, resulting in a loss of more than $1 trillion in value in recent months. Over the past 24 hours, total liquidations exceeded $227 million.

This cryptocurrency downturn coincided with losses in the stock market. The Dow Jones Industrial Average fell by 410 points, while the Nasdaq 100, which is heavily weighted with technology stocks, dropped by 350 points. Major blue-chip companies like NVIDIA, Tesla, Microsoft, and Apple all experienced declines of over 1%.

Declines in Jasmy, Pi Network, LTC, and Ethena as FOMC Decision Approaches

The current declines in both the crypto and stock markets are attributed to adjustments in anticipation of the Federal Reserve’s interest rate decision. The Fed’s two-day meeting is already underway, with a concluding decision expected on Wednesday.

While the Fed is likely to keep interest rates steady at 4.50%, traders are particularly interested in the quarterly dot plot, which may offer insights regarding the timing of future rate cuts.

Investors in stocks and cryptocurrencies are hopeful that the recent market sell-off, coupled with rising recession fears, may lead some Fed officials to adopt a more dovish stance. Such a shift could serve as a catalyst for Bitcoin (BTC) and altcoins like Pi Network, Ethena, Jasmy, and Litecoin. An analyst noted in a message to Bloomberg:

“The ongoing trade tensions and tariff implementations have introduced significant uncertainty. Investors are eager to understand how these policies are influencing the Fed’s economic outlook, especially concerning inflation and growth projections.”

Bitcoin and these altcoins also faced declines after Ki Young Ju, a well-known analyst and founder of CryptoQuant, cautioned that the bull market has likely come to an end. He stated:

“I’ve been calling for a bull market over the past two years, even when indicators were borderline. Sorry to change my view, but it now looks pretty clear that we’re entering a bear market.”

Interestingly, if the Fed adopts a more dovish approach, it could create a favorable environment for Bitcoin and altcoins — reminiscent of the market’s reaction at the beginning of the COVID-19 pandemic, when cryptocurrencies initially plummeted but then bounced back significantly following the Fed’s interest rate cuts.