Bitcoin, Ether, and the top ten non-stablecoin cryptocurrencies all fell in early Asian trading on Tuesday, wiping out the majority of Monday’s gains. Cryptocurrencies fell alongside equity markets in the United States overnight, as traders appeared to be taking profits ahead of this week’s Federal Reserve meeting on rates and a slew of technology earnings. Solana was the leader of the losers. Dogecoin recovered some of its losses following reports that Twitter Inc. CEO Elon Musk is looking to add payment systems to the social media platform, and he is a known supporter of the token.

Quick Facts

Bitcoin fell 3.9% to US$22,836 in the 24 hours to 8 a.m. in Hong Kong, bringing its seven-day loss to 0.6%. According to CoinMarketCap data, ether fell 4.8% to $1,566 on Tuesday morning and is down 3.8% for the week.

Solana fell 8.1% to US$23.91, a 1.8% drop over the week after the token saw the biggest gains in CoinMarketCap’s top 10 list on Monday.

Cardano fell 6.3% to US$0.37, a 1% drop in seven days. Polygon fell 7.5% to $1.09, but was still up 9% since last Tuesday.

Dogecoin, the leading memecoin, fell 1.5% to US$0.08, bringing its weekly losses to 1%. The Financial Times reported on Monday that Musk, the world’s second-richest person, is considering adding payment systems to Twitter, which could include cryptocurrency. Musk has long been a supporter of Dogecoin.

Equities in the United States fell on Monday. The Dow Jones Industrial Average fell 0.8%, while the S&P 500 Index fell 1.3%. The Nasdaq Composite Index fell 2% for its worst trading day in five weeks.

The Fed meets on January 31 and February 1 and is expected to raise interest rates by 25 basis points, breaking a streak of 50 or 75 basis point hikes since last March in an attempt to slow the pace of inflation. The rate decision is scheduled for Wednesday.

Last year’s aggressive rate hikes by the Fed appear to have had the desired effect on inflation. The consumer price index in the United States rose 6.5% year on year in December, down from 7.1% in November and the largest monthly decline since April 2020.

Investors are also anticipating earnings reports from technology leaders such as Apple Inc., Amazon.com Inc., and Alphabet Inc., the parent company of search engine Google, this week. Non-farm payroll data, another key inflation indicator, will be released on Friday.

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