Bitcoin Drops As Michael Saylor's Strategy Halts Accumulation Streak; Ethereum, Dogecoin Also Dip: Analyst Expects 'Violent' Week Ahead

Leading cryptocurrencies dipped on Monday, reflecting a decline in institutional interest and caution ahead of the Federal Reserve’s policy meeting.

What Happened: The apex cryptocurrency rebounded after hitting the ceiling around $120,000, hitting intraday lows of $117,441.44. Trading volume rose 16.79% to over $65 billion in the last 24 hours.

Institutional interest in the asset declined, with Strategy Inc. (NASDAQ:MSTR) halting its BTC accumulation streak last week.

Ethereum also encountered sharp profit-taking, following a 56% monthly rally that brought it within touching distance of $4,000.

Bitcoin's market dominance rose to 60.7%, signaling capital rotation from altcoins, while Ethereum's share shot up to 11.8%, the highest since mid-January.

Cryptocurrency liquidations shot up to $450 million in the last 24 hours, with bullish bets accounting for 82% of the total.

Bitcoin's open interest dropped slightly by 0.76% in the last 24 hours, with the majority of Binance traders with open BTC positions betting on further price declines, according to the Long/Shorts ratio. 

The "Greed" sentiment weakened in the last 24 hours, according to the Crypto Fear & Greed Index.

Top Gainers (24 Hours)

The global cryptocurrency market capitalization stood at $3.88 trillion, following a 1.77% decline in the last 24 hours.

Stocks rose to new highs on Monday. The S&P 500 eked out a narrow gain of 0.02% to close at a record high of 6,389.77. The tech-heavy Nasdaq Composite climbed 0.33% to 21,178.58, also a record closing high. The Dow Jones Industrial Average, however, was the outlier, falling 64.36 points, or 0.14%, to end at 44,837.56.

Investors are expecting the Federal Reserve’s interest rate decision this week, with the market pricing in a 97% chance that rates will remain steady, according to the CME FedWatch tool. Additionally, July's employment report, unemployment rate and hourly wages data will be on their radar. 

See More: Best Cryptocurrency Scanners

Analyst Notes: Blockchain analytics firm CryptoQuant stated that the unrealized profit of Bitcoin's short-term holders remains limited to 13%, compared to 232% and 150% in bull cycles of 2012 and 2021, respectively, making them "less likely" to sell quickly.

Widely followed cryptocurrency analyst and trader Michaël van de Poppe noted Bitcoin's rejection at a key resistance level, around $120,000.

"Interesting price action to start the week, it’s probably going to be a violent one," the analyst predicted.

Photo Courtesy: Travis Wolfe on Shutterstock.com

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