Crypto Market Dips as Investors Await Key Fed Decision

The cryptocurrency market declined slightly on Monday as investors remained cautious ahead of the upcoming Federal Open Market Committee (FOMC) meeting on Wednesday, which is expected to provide insights into future interest rate policy.

The total cryptocurrency market cap has declined by 1% to $2.83 trillion, according to CoinGecko. Bitcoin (BTC) fell 0.7% in the past 24 hours to $83,600, while Ethereum (ETH) edged up 0.3% to $1,918. Meanwhile, XRP gained 0.5% to $2.35, and Solana (SOL) dropped 1.7% to $127.

During the same period, 83,696 traders were liquidated for a total of $175 million. BTC led with $59 million in liquidations, followed by ETH at $28 million, according to CoinGlass data.

Analysts attribute the market’s lack of momentum to investor caution driven by uncertainty over Federal Reserve policy and ongoing tariff concerns.

“Concerns over the US economy have grown following signs of a cooling labor market and a drop in consumer sentiment,” said Konstantinos Chrysikos, Head of Customer Relationship Management at Kudotrade. “Over the weekend, Treasury Secretary Scott Bessent acknowledged the risk of a potential recession, further dampening confidence.”

Chrysikos added that if the central bank adopts a more dovish stance in response to the slowing economy and easing inflation, the greenback and US Treasury yields could decline. Meanwhile, lingering trade uncertainty may contribute to increased market volatility.

“Meanwhile, geopolitical developments could also play a role in shaping market sentiment,” he said. “A positive shift could boost risk-on sentiment and weigh on the US dollar, whereas any setback could temporarily support the currency.”

Fund Flows

The market downturn is further reflected in digital asset investment products, which experienced their fifth consecutive week of outflows, totaling $1.7 billion, according to CoinShares’ weekly Fund Flows report.

This brings total outflows over the past five weeks to $6.4 billion and marks the 17th straight day of withdrawals — the longest negative streak since records began in 2015.

Bitcoin recorded an additional $978 million in outflows, bringing its five-week total to $5.4 billion. Ethereum and Solana also faced outflows of $175 million and $2.2 million, respectively. Meanwhile, XRP defied the trend, recording $1.8 million in inflows.