Cryptocurrency prices climbed on Monday, July 27, as signs of easing geopolitical tensions lifted risk appetite across markets. The move comes just ahead of a Federal Open Market Committee meeting where a third of investors now expect a rate hike.
Ethereum leads the pack
Ethereum was the biggest gainer among the top ten cryptocurrencies by market cap. The broader market followed higher, though gains were modest for most coins. Bitcoin also rose, but lagged behind ETH's performance.
Why now?
The catalyst appears to be a de-escalation in several geopolitical flashpoints that had weighed on sentiment for weeks. Traders are rotating back into risk assets, and crypto is benefiting. But the rally is happening against a cautious backdrop.
The Fed overhang
The Federal Reserve's two-day meeting starts Tuesday. According to a recent survey, 33% of investors expect the Fed to deliver a rate hike. That would be a hawkish surprise and could quickly reverse the current uptrend. The market is pricing in a hold, but the risk is real.
For now, the mood is optimistic. But the FOMC decision on Wednesday will set the tone for the rest of the week. If the Fed stands pat, crypto could extend its gains. If it hikes, expect a sharp pullback.
