Bitcoin's weekend momentum fizzled out on Monday as cryptocurrency markets settled into a holding pattern ahead of the Federal Reserve's interest rate announcement. The largest digital asset by market cap couldn't hold onto its recent gains, leaving traders wondering whether the central bank's decision will provide the catalyst for the next major move.

Here's how major cryptocurrencies traded as of 8:30 p.m. ET on Monday:

Bitcoin (BTC) slipped 0.98% to $90,264.02, pulling back sharply from Sunday evening's highs and touching an intraday low of $89,644. Trading volume jumped 15% over the previous 24 hours, suggesting heightened interest despite the price decline.

Ethereum (ETH) edged up 0.27% to $3,112.05, consolidating around the $3,100 level as traders stayed on the sidelines.

XRP (XRP) gained 0.56% to reach $2.07, showing relative strength compared to Bitcoin.

Solana (SOL) added 0.25% to trade at $133.14.

Dogecoin (DOGE) led the pack with a 1.68% jump to $0.1416, outpacing its larger-cap peers.

Crypto-Related Stocks Buck the Trend

While Bitcoin struggled, cryptocurrency-adjacent stocks finished Monday's regular trading session in positive territory. Strategy Inc. (MSTR) climbed 2.63%, and Coinbase Global Inc. (COIN) advanced 1.66%, showing that equity investors remained more optimistic than crypto traders.

The divergence highlights an interesting dynamic: traditional market participants seem more willing to position for upside than digital asset holders currently glued to their screens waiting for Fed Chair Jerome Powell's every word.

Market Mechanics Tell a Story of Caution

Beneath the surface, market data revealed some interesting dynamics. Cryptocurrency liquidations totaled $200 million over the past 24 hours, according to Coinglass. What's particularly notable is that over $100 million of those liquidations came from bearish short positions getting squeezed out—suggesting that some traders betting against crypto got caught on the wrong side.

Bitcoin's open interest declined 0.29% over the last day, indicating a slight reduction in overall market positioning. Meanwhile, more than 70% of Binance's top traders—defined as the top 20% of users by margin balance—maintained long positions on Bitcoin, according to the exchange's Long/Short Ratio data.

The Crypto Fear & Greed Index showed "Extreme Fear" sentiment pervading the market, reflecting the uncertainty hanging over digital assets as the Fed meeting approaches.

The global cryptocurrency market capitalization stood at $3.09 trillion following a modest 0.93% increase over 24 hours.

Top Performers Defy the Broader Malaise

While major cryptocurrencies mostly traded sideways, some smaller tokens with market caps exceeding $100 million posted impressive gains:

Fasttoken (FTN) exploded 175.31% higher to $1.49, leading all gainers.

Terra (LUNA) surged 37.08% to $0.1411.

Canton (CC) climbed 20.71% to $0.07561.

Traditional Markets Also Treading Carefully

The cautious mood wasn't limited to crypto. U.S. stocks closed lower on Monday as equity traders also positioned defensively ahead of the Federal Reserve's decision. The Dow Jones Industrial Average dropped 215.67 points, or 0.45%, to finish at 47,739.32. The S&P 500 fell 0.35% to 6,846.51, while the tech-heavy Nasdaq Composite declined 0.14% to 23,545.90.

According to CME FedWatch data, markets are pricing in an 87% probability of a 25-basis-point interest rate cut at Wednesday's Federal Reserve meeting, which would mark the third consecutive reduction. The cut itself is essentially a done deal—what really matters is what comes next.

Investors will be parsing the Fed's updated economic projections and listening carefully to Chair Jerome Powell's commentary about the path forward for monetary policy. Any hints of a more hawkish stance on future cuts could ripple through risk assets, including cryptocurrencies.

Analyst Perspectives: Where Bitcoin Goes From Here

Widely followed cryptocurrency analyst and trader Michaël van de Poppe identified $92,000 as a "crucial" support level for Bitcoin, expressing concern about the asset's recent price action.

"Relatively harsh rejection has taken place, which means that it doesn't look great in the short-term," Van De Poppe noted.

If Powell adopts a hawkish tone regarding future rate cuts, Van De Poppe anticipates a "classic sell-off the news type of correction" that could push Bitcoin significantly lower.

"This would mean, the markets sweep those lows a final time in 2025, crash to $78,000-$82,000 and reverse quickly from there," the analyst explained.

Not everyone shares the same bearish outlook. Lacie Zhang, Research Analyst at Bitget Wallet, acknowledged "moderate" downward pressure on both Bitcoin and Ethereum but maintained a more optimistic medium-term view.

"In the near term, we expect BTC to recover toward $95,000–$100,000 and ETH to retest $3,800 as institutional flows normalize and macro uncertainty stabilizes," Zhang said.

The contrast in these forecasts underscores the uncertainty facing cryptocurrency markets. Much depends on how Wednesday's Fed meeting unfolds and whether Powell provides clarity or adds to the confusion about the central bank's policy trajectory for the remainder of 2025.

For now, Bitcoin traders seem content to wait and see, keeping powder dry until the Fed shows its hand.