Bitcoin (BTC) $BTC is trading around US $113,000 and recently slipped about ~1.4% in the past 24 h.
Ethereum (ETH) $ETH is around US $4,030, also showing a mild decline in the shortāterm.
The total crypto market cap sits around US $3.8 trillion, with slight day-to-day decrease and trading volume up.
š° Key Developments
There was a sharp liquidation event: over US $217 million worth of crypto positions were liquidated in 24 hours, affecting both long and short positions and causing sharp moves in major assets.
Bitcoin is consolidating near the ~US $114,000 level, as many traders adopt a cautious stance ahead of the upcoming Federal Open Market Committee (FOMC) meeting.
On the bullish side, analysts are still pointing to structural drivers for a potential general upward phase (bull run) later in 2025, though many caveats apply.
ā Whatās causing the moves
Monetary policy / central bank signals: With the FOMC meeting approaching, crypto markets (like many risk assets) are sensitive to interest rate expectations and inflation data. The consolidation in BTC and ETH may reflect that uncertainty.
Leverage & liquidations: The large liquidation figure underscores how quickly leveraged positions can magnify market movesāboth up and down.
Momentum vs wait-and-see: While there is underlying bullish sentiment for the medium term, the near term seems to be in a āpauseā / consolidation mode until clearer signals arrive.
ā ļø Points of caution / things to watch
If rate hikes or hawkish commentary come from the Fed, markets could see renewed sell pressure.
High volatility remains; while that offers opportunities it also means risk is elevatedāespecially with leverage in play.
Consolidation at high price levels means any break (up or down) could lead to relatively large moves.
Macro events (geopolitics, regulation) can quickly shift market sentiment in crypto more than usual.
š My View & What to Consider
Given the above:
If youāre holding for the medium to long term and believe in the structural story (crypto adoption, institutional flows, etc.), this consolidation could be a period to patiently accumulate if appropriate.
If youāre more tradingāoriented, the key is to watch for a breakout (in either direction) from current levelsāonce triggered, moves could accelerate.
Avoid overāleveraging in the current environment; liquidation risk is clearly nonātrivial.
Stay aware of macro/central bank calendarsācrypto isnāt isolated from broader financial system moves.
