Why Pi Network, Jasmy, LTC, Ethena, and Other Altcoins Are Facing Declines

The recent decline in cryptocurrency prices, including Pi Network, JasmyCoin, Litecoin (LTC), and Ethena, can be attributed to several macroeconomic factors that are affecting the market. Market participants are particularly focused on the upcoming decision from the Federal Open Market Committee (FOMC) regarding interest rates, which has led to significant volatility in both the stock and crypto markets.

There is widespread uncertainty as the market waits to see if the Federal Reserve will keep interest rates unchanged at 4.50%. Investors are also closely watching the quarterly dot plot, which provides insights into future interest rate hikes or cuts. A more dovish stance from the Federal Reserve—where it signals a potential reduction in rates—could provide a boost to the crypto market. On the other hand, if the Federal Reserve indicates that it will continue to tighten monetary policy, this could worsen the current downtrend and put additional downward pressure on cryptocurrency prices.

In addition to this, broader macroeconomic uncertainty is also playing a key role. Ongoing trade tensions, the implementation of tariffs, and growing fears of a potential recession are contributing to overall market instability. This broader market sell-off, with major stocks like NVIDIA, Tesla, and Apple all falling, is weighing heavily on investor sentiment and causing a ripple effect in the cryptocurrency market.

Furthermore, there is a growing sentiment that the current bull market might be over. Well-known analyst Ki Young Ju has publicly warned that the market has shifted into a bear phase. His shift in outlook has caused concern among traders, leading to more cautious positioning and further downward pressure on prices.

Lastly, increased market liquidations have also contributed to the ongoing sell-off. In the past 24 hours, total liquidations have reached over $227 million, indicating that many investors are closing their positions, further exacerbating the downward trend.

Despite these negative factors, there is still some hope for a potential rebound. If the Federal Reserve adopts a more dovish approach, similar to the way it slashed interest rates during the early days of the COVID-19 pandemic, there could be a market recovery. During that period, cryptocurrencies initially fell but quickly rebounded as lower interest rates spurred investor confidence and capital flowed back into risk assets, including digital currencies.

For now, the crypto market is in a holding pattern, with investors waiting for the FOMC decision and any guidance on future monetary policy. The fate of altcoins like Pi Network, JasmyCoin, Litecoin, and Ethena will likely depend on the direction taken by the Federal Reserve and the overall sentiment in the coming days.