Market Overview
The cryptocurrency market experienced a decline on Tuesday, with the total market capitalization dropping by 1.2% to $3.17 trillion. This downturn affected 86 of the top 100 cryptocurrencies, including major players like Bitcoin (BTC) and Ethereum (ETH).
Price Movements
Bitcoin (BTC) decreased by 1.1% to trade at $90,480, while Ethereum (ETH) saw a slight decline of 0.3% to $3,122. Among the top 10 cryptocurrencies, Tron (TRX) experienced the largest drop at 2.1%, currently trading at $0.2811. Solana (SOL) also saw a significant decrease of 1.9%, bringing its price to $133.
Gainers
Despite the overall market downturn, some cryptocurrencies managed to post gains. Zcash (ZEC) led the way with a 12.8% increase to $419, followed by Canton (CC), which rose by 9.8% to $0.07446.
Sentiment Indicator
The crypto fear and greed index remains in the “fear” territory, with a slight increase from 24 to 25. This indicates a cautious sentiment among investors, reflecting the overall market conditions.
Federal Reserve Outlook
Investors are closely watching the US Federal Reserve, which is expected to announce an interest rate cut this week. Aurelie Barthere, Principal Research Analyst at Nansen, commented that all eyes are on Bitcoin’s $91,000 resistance level. She expects Bitcoin to hover around this level following the Federal Open Market Committee (FOMC) meeting.
Barthere also noted that the official announcement of Kevin Hassett as the next Fed Chair, expected in early 2026, could be bullish for the crypto market. This decision has been delayed from its original timeline.
Regulatory & Market Developments
The US Commodity Futures Trading Commission (CFTC) has launched a pilot program allowing Bitcoin, Ether, and USDC to be used as collateral in derivatives markets. This move could have significant implications for the crypto market.
ETF Flows
The performance of crypto exchange‑traded funds (ETFs) was mixed. On Monday, US Bitcoin spot ETFs saw outflows of $60.48 million, with Grayscale experiencing the highest outflows at $44.03 million. Conversely, Ethereum ETFs saw inflows of $35.49 million, with BlackRock and Grayscale leading the way.
Large‑Scale Purchases
Michael Saylor’s company, Strategy, purchased an additional 10,624 BTC for approximately $962.7 million at an average price of $90,615 per coin. This acquisition brings Strategy’s total Bitcoin holdings to 660,624 BTC, purchased for $49.35 billion at an average price of $74,696.
Outlook
The crypto market is currently experiencing a dip, with investors awaiting the Federal Reserve’s interest rate decision. Despite the downturn, some cryptocurrencies have managed to post gains, and regulatory developments could have long‑term implications for the market. The overall sentiment remains cautious, with the fear and greed index in the “fear” territory.
