The cryptocurrency market experienced a downturn over the weekend, with Bitcoin (BTC) retreating to around $88,700 and Ethereum (ETH) falling to $2,930. Other major altcoins, including Dogecoin (DOGE) and Solana (SOL), also saw declines of over 1%. This pullback occurred as renewed fears of a potential trade war emerged, with former President Donald Trump threatening to impose a 100% tariff on Canadian goods imported into the United States.
The market's cautious sentiment is reflected in the Crypto Fear & Greed Index, which remained in the "Fear" zone at 34 points. This comes despite mixed signals in broader market metrics. The total crypto market capitalization showed a marginal 0.04% increase to $3.03 trillion, while 24-hour trading volume rose 5.61% to $104.65 billion.
Investors are now focused on two key upcoming catalysts. The Federal Open Market Committee (FOMC) is scheduled to announce its interest rate decision on Wednesday. Economists widely expect the Federal Reserve to leave rates unchanged between 3.50% and 3.75%, with market-implied odds above 98%. The crypto market could rebound if the Fed signals more rate cuts later in the year. Additionally, the market will react to corporate earnings reports from major U.S. companies like Apple, Microsoft, and Meta Platforms, which can influence overall risk sentiment.
In other sector-specific developments, the total value locked (TVL) in decentralized finance (DeFi) saw a negligible 0.01% increase to $119.96 billion, led by Aave. Conversely, the non-fungible token (NFT) sales volume plummeted by a staggering 70.22%. Meanwhile, several smaller tokens posted extraordinary gains, with Black Phoenix (BPX), HARRIS DOGS (DOGS), and XenBitcoin (XBTC) surging by over 1,900% each.
Notable institutional moves included Grayscale submitting an S-1 filing to launch a new BNB ETF ($GBNB), and GameStop transferring its entire $422 million Bitcoin (BTC) holdings to Coinbase, sparking speculation of a potential large-scale sell-off.
