Bitcoin's price action on Monday was largely stagnant, trading between $95,000 and $97,000 as the cryptocurrency maintained its rangebound movement. In contrast, Ethereum experienced a notable rebound, spiking to a two-week high of $2,848.78 before easing off in the evening. Despite this, Bitcoin's market share increased to 59.8% over the past 24 hours after a 3.16% price growth, adding complexity to the overall market dynamics.
In addition to price fluctuations, the cryptocurrency sector saw significant liquidations amounting to $238 million in the last 24 hours, including nearly $150 million in long position liquidations. Bitcoin's Open Interest increased by 1.58%, suggesting that even with a sideways market, there might be upcoming volatility. Data indicated an increased number of traders opening long positions over short ones, reflecting a cautious optimism among investors.
The broader market context also presented interesting insights. The overall cryptocurrency market capitalization slightly contracted by 0.92% to $3.17 trillion, and the market sentiment remained neutral according to the Crypto Fear & Greed Index. Meanwhile, traditional stock futures showed modest gains, with the Dow Jones, S&P 500, and Nasdaq futures all rising slightly in preparation for resumed trading after the Presidents Day holiday.
Other factors impacting the market include upcoming Federal Reserve meeting minutes, which are expected to provide clues on future interest rate policies. Additionally, there were important observations related to Ethereum’s supply dynamics, as data suggested that a significant portion of available ETH is moving into cold wallets, implying a reduced likelihood of a large sell-off in the long term. Experts, including influential trader Ali Martinez, noted bearish technical signals in Bitcoin’s charts and pointed out major sell-offs by Bitcoin miners which could signal future corrections.