Why is the Crypto Market Down Today? De-risking Ahead of FOMC Weighs on Prices

The global cryptocurrency market cap has declined by 0.67% over the last 24 hours, currently testing the $2.54 trillion level. This pullback comes as traders aggressively reduce risk exposure in anticipation of the Federal Reserve’s FOMC decision on Wednesday. Market sentiment has turned cautious after the total market cap was rejected at the $2.63 trillion resistance for the third time in two weeks. With nearly $281 million in long positions liquidated in a single day, the market is undergoing a necessary deleveraging process amid macroeconomic uncertainty.

Bitcoin has followed this downward trend, slipping toward $76,812 within a weakening ascending channel. Despite its long-term recovery since February, $BTC is showing a clear volume divergence; while prices previously edged higher, trading volume has dried up, indicating a lack of conviction among buyers. Historically, Bitcoin has dropped following eight of the last nine FOMC meetings, prompting many traders to close their long positions early. If $BTC fails to hold the $75,541 support level, it could face a deeper correction toward $73,050.

The altcoin sector, particularly speculative assets, has felt the sharpest sting of this liquidity withdrawal. MemeCore (M) emerged as a top loser, plummeting 14% daily to $3.68. This breakdown was preceded by a month-long divergence where its price rose as volume thinned, making it highly vulnerable to the current "risk-off" environment. As the market awaits Jerome Powell's press conference and monitors a hawkish inflation outlook, the $2.49 trillion total market cap level remains the critical "make-or-break" point for a potential rebound.

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