Traders are shifting expectations, with futures markets pricing a nearly 40% chance of another cut by March despite the Fed’s cautious tone.
As prices recovered on positive macro signals, nearly $350 million worth of short positions were liquidated in the past day.
Analysts say the price decline is a sign of investor accumulation through self-custody or yield staking instead of market panic.
One analyst said bitcoin's key support level sits at $100,000 and a breach would trigger a broader liquidity crunch.
Spot ETF flows and corporate crypto treasuries remain key drivers of the current market cycle, analysts said.
Bitcoin, ether and other altcoins rose Sunday as traders returned to the market following a dip driven by macro uncertainty.
Bitcoin and ether both benefit from the growing trend of firms incorporating the cryptocurrencies into their treasuries, analysts said.