Bitcoin and Ethereum extended their losses on Sunday as traders endured another volatile week, with US stock futures heading down ahead of the Federal Reserve's upcoming policy meeting.
Bitcoin slipped nearly 1.8% to trade around $82,700, while Ethereum fell 2.5% to $1,889.
As of Sunday evening, Dow Jones Industrial Array Array Average Futures had dropped by 0.37%, while S&P 500 and NASDAQ composite futures had dropped by 0.46% and 0.55%, respectively.
The market is increasingly focusing on the Federal Reserve fee outlook, with futures traders priced central banks as likely to stabilize interest rates this week.
Though expectations for interest rate cuts later this year remain intact, recent inflation data and strong labor market numbers raised concerns that the Fed could delay monetary policy Wednesday.
A more hawkish stance has allowed us to weigh risk assets, including stocks and crypto, in recent months.
Geopolitical tensions are also putting pressure on them.
President Trump's recent announcement of new tariffs and potential retaliation measures from the European Union injected new uncertainty into global markets.
Furthermore, his executive order to establish a strategic Bitcoin reserve has temporarily encouraged speculation about the US government's involvement in the crypto market before investors realized that no immediate budgets were allocated for purchases.
Bitcoin's first spike after the announcement was short-lived, and prices reversed after traders realized the lack of immediate action from Washington.
Meanwhile, leverage remains high in the derivatives market.
Coinglass data shows open interest in crypto futures. $253 million With the last 24 hours of settlement.
The funding rate, which temporarily fell negative during the sale last week, has returned to neutrality, suggesting uncertainty in market positioning.
With the increased risks of the macroeconomics and regulatory developments unfolding, traders are looking for a catalyst to break the current downward trend.
Federal Reserve policy decisions, coupled with new signals from institutional investors or regulatory agencies, can determine whether the crypto market will regain momentum or face more downside pressure in the coming weeks.
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