Bitcoin (BTC) dropped 3% to below $58,400 as crypto markets saw a selloff ahead of the Federal Reserve meeting, despite strong weekend performance.
Bitcoin (BTC) kicked off the trading week down 3%, dipping below US$58,400, as broader crypto markets faced a selloff ahead of a highly anticipated Federal Reserve meeting. The CoinDesk 20, a measure of the largest digital assets, fell 5%, with BTC exchange-traded funds (ETFs) in the US recording over US$263 million in net inflows the highest since July 22. Meanwhile, ether ETFs saw their second consecutive day of inflows since August 28, with US$1.5 million.
The decline came after BTC spent much of the weekend trading above US$60,000, bolstered by favorable US economic data late Friday. However, crypto markets slumped as Asian exchanges opened Monday, marking the start of a pivotal week where traders globally expect the Federal Reserve to implement its first-rate cuts in over four years. Polymarket bettors give it a 51% chance of a 50-basis point cut, a 48% chance of a 25-basis point cut, and only a 2% chance of no change.
Historically, rate cuts have spurred bullish sentiment among traders, as lower borrowing costs fuel growth in riskier sectors like cryptocurrency. However, Monday’s selloff led by ether (ETH) resulted in a 5.5% drop, the largest one-day slide since early August. Other major tokens also saw losses, with Cardano’s ADA down 5%, Solana’s SOL falling 4%, and BNB Chain’s BNB faring slightly better with a 1.1% decline.
In contrast, Nervos’ CKB token gained 10.5%, driven by positive sentiment following its listing on the Korean exchange Upbit, where traders have shown strong interest in meme coins. Additionally, futures traders betting on higher prices lost over US$143 million due to the sudden market downturn, according to CoinGlass data.
The BTC/ETH ratio, which tracks the relative movement of Bitcoin and Ether, also fell to four-year lows, reflecting Ethereum’s struggle against rising competition. Over the past year, new blockchain platforms like Solana, Base, and Telegram-affiliated TON have increasingly captured the attention of developers and traders, particularly for launching meme coins, diminishing some demand for Ethereum.