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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, with a larger chunk of this, $136 million, representing bullish bets.
Traders had leveraged long positions over the weekend, with Bitcoin reaching nearly $70,000 in Monday's trading session — a trend that is now "selling off" on recent concerns of selling by the U.S. government and the Fed meeting outcome.
Bitcoin and the entire crypto market fell as traders took note of signals that the U.S. government may sell portions of its sizable crypto holdings. According to blockchain research firm Arkham Intelligence, a U.S. government-linked wallet transferred $2 billion in Bitcoin to a new address on Monday.
Tomiwabold OlajideBitcoin dropped to a low of $65,875 on Tuesday before rising somewhat to trade around $66,330 at press time. On Monday, the world's largest cryptocurrency approached $70,000 for the first time since mid-June.
The majority of cryptocurrencies were also sustaining losses at press time.
Fed decision looms
Investors are closely monitoring the outcome of the Federal Reserve's latest policy meeting, which is expected to provide crucial insights into the future direction of interest rates and monetary policy.
The Federal Reserve's July meeting begins Tuesday and ends Wednesday, with a monetary policy decision and press conference by Fed Chairman Jerome Powell.
Markets broadly expect the central bank to leave interest rates steady this week, but many investors are hopeful that policymakers will provide new signals about the outlook for rates.
This Tuesday is expected to see the release of key economic data. Later this week, ADP's private payrolls report is due, as well as the July jobs report, which includes nonfarm payrolls and unemployment statistics.
Alex Dovbnya
Godfrey Benjamin
Vladislav Sopov
Dan Burgin