Bitcoin’s early-week advance unraveled on Tuesday, dragging the asset back toward the $90,000 level as traders shifted their focus to Wednesday’s Federal Reserve interest-rate decision.
The broader market also weakened, wiping out the momentum seen at the start of the week. Bitcoin was recently quoted near $90,150, down from Monday’s high of $92,350, while the CoinDesk 20 Index (CD20) slipped 2.1% over the past 24 hours with all components declining.
The pullback echoes last week’s trading rhythm, when BTC climbed from $86,300 to $93,200 between Sunday and Tuesday before losing steam and dropping to $88,000 later in the week.
This time, the Fed meeting adds a layer of uncertainty. Markets overwhelmingly expect a 25-basis-point rate cut — typically a constructive development for cryptocurrencies because it reduces the appeal of holding cash. But with expectations anchored for weeks, much of the optimism may already be priced in. If so, a rate cut could ironically trigger selling as traders reassess the lack of new bullish catalysts for year-end.
Derivatives positioning
Volatility gauges remain steady despite the upcoming announcement. Bitcoin’s BVIV and ether’s EVIV 30-day implied volatility indexes showed little movement, signaling minimal pre-Fed anxiety.
Deribit activity was concentrated in June expiries, where traders snapped up deep OTM puts as low as $20,000 and calls above $200,000 — strategies typically associated with volatility speculation rather than directional conviction. Across BTC and ETH, puts continue to command richer premiums than calls. Block activity in bitcoin featured risk reversals and put-diagonal spreads, while ether saw turnover in call spreads and risk-reversal trades.
Futures open interest has declined across most large-cap tokens, including BTC and ETH. Bitcoin Cash (BCH) recorded an 8% drop in OI, whereas Zcash (ZEC) moved higher, rising 16% to 2.30 million ZEC, just shy of its all-time high of 2.32 million set on Dec. 4.
Token talk
Altcoins remained under significant pressure as risk appetite deteriorated further. HYPE fell 8.6% over the past day, while STRK, QNT and KAS dropped between 5.7% and 6.3%.
CoinMarketCap’s “altcoin season” index has plunged to 18/100 — a stark contrast to its Sept. 20 reading of 78/100.
Bitcoin is down roughly 20% in the past 90 days, but altcoins have endured even deeper drawdowns. More than half of the top-100 tokens by market capitalization have declined over 40% during the same period.
