Weak ETF demand and geopolitical uncertainty continued to limit buying interest in the crypto market.
Reduced selling by long-term holders offered support despite broader market uncertainty
Photo Credit: Unsplash/Rodion Kutsaiev
Bitcoin traded near $65,200 (roughly Rs. 62.80 lakh) on Monday as the cryptocurrency market attempted to stabilise ahead of this week's US Federal Reserve meeting, with geopolitical tensions and macroeconomic uncertainty keeping investors cautious. The world's largest cryptocurrency rose by 1.91 percent in the last week, based on today's CoinMarketCap data. Ethereum (ETH) was trading near $1,950 (roughly Rs. 1.88 lakh), reflecting selective strength across the broader crypto market. Bitcoin is currently priced around Rs. 62.80 lakh in India, while Ethereum trades near Rs. 1.88 lakh, as per today's Gadgets 360 price tracker.
Analysts also added that easing oil prices and reduced selling from long-term holders have supported sentiment, although weakening spot Bitcoin ETF demand and shifting interest rate expectations continue to limit stronger upside.
Major altcoins traded with mixed momentum on Monday, broadly tracking Bitcoin's steady movement. Binance Coin (BNB) was priced around $573 (roughly Rs. 55,190), while Solana (SOL) traded near $76 (roughly Rs. 7,341). XRP hovered around $1.1 (roughly Rs. 106), and Dogecoin (DOGE) was trading close to $0.073 (roughly Rs. 7.0), indicating selective buying across large-cap cryptocurrencies.
Sharing his assessment of current market conditions, Akshat Siddhant, Lead Quant Analyst at Mudrex, said, “Weakness in spot Bitcoin ETFs has capped buying momentum [...] Markets now see a 38 percent chance of a Federal Reserve rate hike, up from just 13 percent a week ago. Kevin Warsh's remarks will be closely watched, with a dovish outlook potentially lifting Bitcoin towards $66,000 (roughly Rs. 63.53 lakh), while a hawkish tone could drag it back to the $61,000 (roughly Rs. 58.72 lakh) support.”
Providing a broader market outlook, Vikram Subburaj, CEO, Giottus.com, said, “The rebound was initially supported by $999.3 million (roughly Rs. 9,623 crore) of inflows into US spot Bitcoin ETFs over seven sessions [...] Markets are assigning a 36.3 percent probability to a 25-basis-point rate increase [...] Investors should avoid chasing the rebound before Bitcoin clears $68,000 (roughly Rs. 65.48 lakh) and the short-term-holder cost basis near $69,500 (roughly Rs. 66.92 lakh) [...] Staggered purchases and limited leverage would be more prudent around the Fed decision.”
Commenting on the latest market trends, the CoinSwitch Markets Desk said, “Dormant Bitcoin activity also fell to its lowest level since Q3 2022, suggesting long-term holders have reduced selling. Holding above $65,000 (roughly Rs. 62.57 lakh) keeps the near-term structure constructive, while a sustained break above $66,000 (roughly Rs. 63.54 lakh) could open the path towards $67,000-$68,000 (roughly Rs. 64.50 lakh-Rs. 65.48 lakh). However, the Fed decision and geopolitical developments remain key drivers.”
Overall, analysts said Bitcoin has remained resilient above the $65,000 level despite geopolitical uncertainty and shifting expectations around US interest rates. However, the Federal Reserve's policy decision, institutional demand, and Bitcoin's ability to reclaim the $66,000-$68,000 (roughly Rs. 63.54 lakh-Rs. 65.48 lakh) resistance zone are expected to determine the market's next direction.
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