Cryptocurrency Market Update

The cryptocurrency market is currently facing selling pressure, with nearly $170 million reported in liquidations.

According to CoinGlass data, $160.67 million accounted for crypto liquidations, primarily from bullish bets totaling $136 million.

Traders had leveraged long positions over the weekend, pushing Bitcoin to nearly $70,000 in Monday’s trading session. However, the market is now experiencing a sell-off due to recent concerns about potential selling by the U.S. government and the outcome of the federal meeting.

Bitcoin and the broader crypto market declined as traders noted signals that the U.S. government may sell portions of its substantial crypto holdings. According to Arkham Intelligence, a U.S. government-linked wallet transferred $2 billion in Bitcoin to a new address on Monday.

Bitcoin dropped to a low of $65,875 on Tuesday before rebounding to around $66,330 at press time. On Monday, Bitcoin had approached $70,000 for the first time since mid-June. The majority of cryptocurrencies were also experiencing losses.

Fed Decision Looms

Investors are closely watching the outcome of the Federal Reserve’s latest policy meeting, which is expected to provide crucial insights into future interest rates and monetary policy.

The Fed’s July meeting begins Tuesday and ends Wednesday, featuring a monetary policy decision and press conference by Chairman Jerome Powell.

Markets broadly expect that interest rates will remain steady this week, but many investors are hopeful for new signals regarding rate outlooks.

This Tuesday, key economic data is expected to be released. Later this week, reports from ADP on private payrolls and the July jobs report, which includes nonfarm payrolls and unemployment statistics, are due.

This article was originally published on U.Today