Bitcoin (BTC) and most major altcoins have started the week on a downward trend as the market braces for the Federal Reserve's upcoming interest rate decision.
BTC has dropped to the $100,000 mark, with other key cryptocurrencies like Ethereum (ETH), XRP, Solana (SOL), and Dogecoin (DOGE) seeing losses of 5% to 10%.
Analysts attribute Bitcoin’s decline to profit-taking by investors, even after support from U.S. President Donald Trump’s executive orders aimed at fostering crypto adoption.
Sean McNulty, head of derivatives at FalconX APAC, explained that the market had already priced in much of the positive sentiment around these developments.
“Investors were expecting something more immediate, like a Bitcoin reserve actively buying BTC. When that didn’t materialize, those who bought on the hype began to take profits, leading to the price drop,” McNulty told Bloomberg.
Adding to the market’s uncertainty is the Federal Reserve’s impending decision on interest rates, which has created a cautious atmosphere among investors. Experts suggest this uncertainty is amplifying volatility in the crypto market, putting further pressure on Bitcoin and other cryptocurrencies.
Bernstein has flagged growing risks in Ethereum’s corporate adoption trend, cautioning that the rise of “ETH treasuries” could reshape the network’s supply and risk dynamics.
With Bitcoin hovering near $119,000, traders are weighing their next move carefully. The question dominating the market now is simple: Buy the dip or wait for a cleaner setup?
Bitcoin has officially reached the $116,000 milestone, a level previously forecasted by crypto services firm Matrixport using its proprietary seasonal modeling.
Interactive Brokers, one of the world’s largest online brokerage platforms, is exploring the possibility of issuing its own stablecoin, signaling a potential expansion into blockchain-driven financial infrastructure as U.S. crypto regulation begins to ease.