Why Is Crypto Market Down Today ?

The cryptocurrency market is down today as market turbulence rises ahead of Fed Chairman Jerome Powell's post-Federal Open Market Committee (FOMC) news conference on February 1 when he will discuss the impending interest rate hike and his perspectives on the US economy.

Bitcoin (BTC), which jumped 43% in January, and Ether (ETH) have retraced some of their recent gains after reaching new highs for 2023. The key downside catalyst appears to be investors' concern about the approaching FOMC interest rate decision, and comparable pullbacks are being witnessed across the stock market, which is down. Because of the uncertainty around the FOMC decision, Bitcoin had its second best January on record.