Bitcoin failed to build on recent gains on Monday, as investors awaited the Federal Reserve’s decision on interest rates.
| Cryptocurrency | Gains +/- | Price (Recorded at 8:30 p.m. ET) |
|---|---|---|
| Bitcoin (CRYPTO: BTC) | -0.98% | $90,264.02 |
|
Ethereum (CRYPTO: ETH) |
+0.27% | $3,112.05 |
| XRP (CRYPTO: XRP) | +0.56% | $2.07 |
| Solana (CRYPTO: SOL) | +0.25% | $133.14 |
| Dogecoin (CRYPTO: DOGE) | +1.68% | $0.1416 |
Crypto Rally Fizzles Out
The apex cryptocurrency pulled back sharply following its Sunday evening gains, reaching an intraday low of $89,644. Trading activity remained high, with volume surging 15% over the last 24 hours.
Ethereum moved sideways, consolidating in the $3,100 region, while XRP and Dogecoin rose 0.56% and 1.68%, respectively.
Shares of cryptocurrency-linked stocks such as Strategy Inc. (NASDAQ:MSTR) and Coinbase Global Inc. (NASDAQ:COIN) closed up 2.63% and 1.66%, respectively, during the regular trading session.
Benzinga Edge delivers real-time stock alerts, trade ideas, and professional investing tools to help you navigate the market. Find out more about MSTR and COIN here.
Cryptocurrency liquidations reached $200 million over the last 24 hours, according to Coinglass, with over $100 million in bearish short positions erased.
Bitcoin's open interest fell 0.29% in the last 24 hours. Meanwhile, over 70% of Binance's top traders i.e, top 20% users with the highest margin balance, were positioned long on BTC, according to the Long/Short Ratio.
The "Extreme Fear" sentiment prevailed in the market, according to the Crypto Fear & Greed Index.
Top Gainers (24 Hours)
| Cryptocurrency (Market Cap>$100 M) | Gains +/- | Price (Recorded at 8:30 p.m. ET) |
|---|---|---|
| Fasttoken (FTN ) | +175.31% | $1.49 |
|
Terra (LUNA) |
+37.08% | $0.1411 |
| Canton (CC ) | +20.71% | $0.07561 |
The global cryptocurrency market capitalization stood at $3.09 trillion, following a modest rise of 0.93% in the last 24 hours.
Stocks Pull Back Ahead Of Fed Decision
Stocks closed in the red on Monday. The Dow Jones Industrial Average fell 215.67 points, or 0.45%, to finish at 47,739.32. The S&P 500 slipped 0.35% to settle at 6,846.51, while the tech-heavy Nasdaq Composite pulled back 0.14% to end at 23,545.90.
A 25-basis-point cut is almost fully priced for the Federal Reserve meeting on Wednesday, with CME FedWatch data showing an 87% chance for the third straight interest-rate reduction.
In addition to the expected cut, investors will keep an eye on Fed’s fresh economic projections and Chair Jerome Powell’s remarks
Where Does BTC Go From Here?
Widely followed cryptocurrency analyst and trader Michaël van de Poppe identified $92,000 as a "crucial" level for Bitcoin
"Relatively harsh rejection has taken place, which means that it doesn’t look great in the short-term," Van De Poppe said.
If Fed Chair Powell takes a hawkish approach regarding future rate cuts, the analyst predicts a "classic sell-off the news type of correction."
"This would mean, the markets sweep those lows a final time in 2025, crash to $78,000-$82,000 and reverse quickly from there," the analyst added.
Lacie Zhang, Research Analyst at Bitget Wallet, noted "moderate" downward pressure for both Bitcoin and Ethereum.
"In the near term, we expect BTC to recover toward $95,000–$100,000 and ETH to retest $3,800 as institutional flows normalize and macro uncertainty stabilizes," Zhang said in a note to Benzinga.
Photo Courtesy: vinnstock on Shutterstock.com
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