Crypto market dips as investors await Federal Reserve meeting

A slump in the crypto market was witnessed today with Bitcoin and other smaller tokens such as Ether, BNB and XRP experiencing a drop in value. Speculators tread cautiously in anticipation of the Federal Reserve meeting this week, which could potentially suggest extended periods of increased interest rates.

Bitcoin, the most significant digital asset, fell to its lowest value in a week at one stage today, April 29. However, it managed to minimise some of this decline, trading at a reduced 2% at US$62,505 at 12.30pm Singapore time.

The Depository Trust Company, which is responsible for providing settlement and clearing services in the US, announced on Friday that crypto-linked Exchange-Traded Funds (ETFs) would not be granted collateral value for line-of-credit facilities. This announcement has sparked discussions on the potential repercussions for…