Bitcoin (BTC) and Ethereum (ETH) Dipped Ahead of the Federal Reserve's Monetary Policy Meeting

Crypto traders are kicking off the new week with a focus on the upcoming Federal Reserve monetary policy meeting, which is set to begin on Tuesday.

What Happened: Bitcoin experienced sell-offs throughout the evening, impacting the cryptocurrency market. The flagship token had risen to peak at $96,000 in the early morning hours.

Ethereum also slipped below the $1,800 mark overnight, with trading volume increasing by over 6% in the last 24 hours.

At the beginning of the year, Bitcoin's market dominance reached a yearly high of 63.9%, while Ethereum's share stood at 7.4%.

The recent pullback has resulted in the erosion of over $180 million worth of long positions from the market in the last 24 hours.

Bitcoin's Open Interest has decreased by over 3% in the last 24 hours, reaching $62.19 billion.

Over 50% of Binance traders who have open BTC positions are currently short on Bitcoin, as indicated by the Long/Short Ratio.

The market sentiment has shifted to "Neutral," according to the Crypto Fear and Greed Index.

Top Gainers (24 Hours)

The global cryptocurrency market cap has dropped by 1.58% to reach $2.94 trillion in the last 24 hours.

Stock futures showed slight declines on Sunday night. The Dow Jones Industrial Average Futures slid by 249 points, or 0.61%, to 40,178, while futures tied to the S&P 500 dipped by 0.64%, and Nasdaq 100 Futures lost 0.64%.

Equities have experienced a substantial rebound over the last two weeks, with the S&P 500 fully recovering the losses incurred since President Donald Trump imposed sweeping tariffs on trade partners on "Liberation Day."

This week, market participants will be keeping an eye on the Fed's policy meeting, which is set to commence on Tuesday. Traders have priced in a nearly 97% chance that interest rates will remain within their current range of 4.25%-4.50%, according to the CME FedWatch tool data.

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Analyst Notes: Cryptocurrency analyst and trader Ali Martinez has warned about the potential for a Bitcoin pullback, highlighting a "sell signal" by the TD Sequential indicator on the BTC/USD chart at the $94,765 support level.

"If Bitcoin were to lose the $94,765 support level, a price correction to $90,000 or even $86,000 could follow, setting the stage for another cycle of accumulation," Martinez projected.

Typically, parabolic slope patterns are characterized by a steep, rapid, and exponential rise in price, which is later followed by a sharp decline.

Cryptocurrency analyst Michaël van de Poppe has observed that Ethereum's valuation has dropped to its lowest point since August 2022, marking the COVID bottom in March 2020 and January 19.

"Forward-looking 12 months after those dates prices were substantially higher. Happy to accumulate ETH," Van de Poppe stated in a recent post.

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