The Bitcoin price drop over the weekend caught market participants off guard, especially after BTC briefly touched $97,000 last week. As of Monday, Bitcoin is trading at $94,407 (roughly Rs. 79.5 lakh) on global exchanges, reflecting a nearly 2 percent decline ahead of the highly anticipated US Federal Open Market Committee (FOMC) meeting. Let’s break down the top factors influencing this dip and how it impacts the broader cryptocurrency market.
1. Cautious Market Ahead of US FOMC Meeting
Investors are showing increased caution ahead of the FOMC meeting this week, where the US Federal Reserve may signal its next interest rate move. As monetary policy directly influences liquidity and risk appetite, traders often reduce exposure before such events. According to Alankar Saxena, CTO of Mudrex, “Bitcoin now faces resistance near $97,900 and support around $92,000.”
2. Increased On-Chain Activity Suggests Market Uncertainty
Bitcoin recently recorded over 925,000 active addresses in a single day—the highest in six months. While this signals rising engagement, it also reflects potential indecision among investors. The surge in wallet activity may correlate with profit-taking behavior as BTC approaches psychologically significant price levels near $100,000.
3. Altcoin Momentum Weakens
Ethereum (ETH), the second-largest cryptocurrency, saw a 1.77% dip to $1,806 on global exchanges. On Indian platforms, it fell by 3.81%. Other altcoins like Ripple, Solana, Avalanche, and Stellar also saw price declines, reinforcing the view that broader crypto market sentiment has turned slightly bearish ahead of macroeconomic events.
4. Positive Macro Developments Offer Limited Support
Despite some optimism from potential US-China trade negotiations and a 1.5% rise in traditional markets like the S&P 500 and Nasdaq, crypto prices did not follow suit. According to CoinSwitch Markets Desk, “Investors seek stability amid volatility.” The Bitcoin price drop illustrates that market participants may be prioritizing risk management over speculative buying.
5. Institutional Interest Grows, But Resistance Remains
Himanshu Maradiya of CIFDAQ noted that institutional interest in tokenized assets and blockchain-based funds is growing. However, traders are wary of resistance near psychological price points like $100K, where volatility spikes. As such, the market tone remains “constructive,” but not without caution.
What’s Next for Bitcoin and the Crypto Market?
The crypto market, currently valued at $2.94 trillion according to CoinMarketCap, dipped by 1.5% in the last 24 hours. While some altcoins like Tron, Polygon, and Leo showed resilience, most tokens followed Bitcoin’s bearish momentum. The CoinDCX research team emphasized that “the top 10 tokens are closely mirroring Bitcoin’s trajectory.”
As the US FOMC decision approaches, short-term volatility is expected to persist. Long-term investors may find current price levels attractive for accumulation, but traders should be cautious due to potential swings.
Read the full report on Gadgets 360 Crypto News.
Also Read: Crypto Trends 2025: What to Watch
