Crypto Market Stalls Ahead of Fed Minutes Bitcoin Eyes $100,000 Breakout

Major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) saw a dip on Tuesday as investors reduced their risk exposure ahead of the Federal Reserve’s September meeting minutes. Bitcoin traded between $85,000 and $86,000, while Ethereum fluctuated between $2,600 and $2,700. The market’s rally from Sunday cooled off, with crypto-related stocks such as Coinbase Global Inc. (COIN) and Bitmine Immersion Technologies Inc. (BMNR) closing down 1.32% and 2.20%, respectively. In the past 24 hours, liquidations totaled $142.50 million across both long and short positions, according to Coinglass data.

Despite the stagnation, the Crypto Fear & Greed Index indicated a prevailing 'Greed' sentiment. Analyst Ali Martinez noted that Bitcoin is building a significant support zone between $83,300 and $84,600, with $86,700 as the breakout point. He suggested that if buyers defend this support and push past the range, Bitcoin could target $100,000 again. On-chain analytics firm Santiment reported that Bitcoin saw its largest single-day exodus from exchanges in seven months, with exchange supply dropping to roughly 6.50% of the total BTC supply, reinforcing a bullish outlook.

Meanwhile, traditional stock markets extended gains on Tuesday. The Dow Jones Industrial Average rose 0.49%, the S&P 500 advanced 0.58% to a record close, and the Nasdaq Composite climbed 0.45% to an all-time high. Traders are now focusing on Wednesday’s release of the Federal Reserve’s September meeting minutes for insights into future interest rate policy. The CME Group’s FedWatch tool shows a 20.5% likelihood of a rate hike in October, down from 50.9% a week prior.