Crypto Market Declines as Bitcoin Nears $100K Support Ahead of FOMC Meeting

Bitcoin, Ether, and other major cryptocurrencies slipped over the weekend as traders digested fresh macroeconomic data ahead of the upcoming Federal Open Market Committee (FOMC) meeting.

Bitcoin dropped to ~$107,350 as of Monday morning, marking its lowest level since early July. Ether fell to ~$4,365, while XRP declined to ~$2.71, and Solana to ~$196.5.

“The crypto market extended its decline over the weekend following the PCE release, as persistently elevated inflation dampened expectations for a September rate cut,” said Min Jung, research analyst at Presto Research.

Sticky Inflation and Whale Sell-Offs Pressure the Market

Last Friday’s Personal Consumption Expenditures (PCE) report showed core inflation rising 2.9% in July—the highest annual rate since February. While the figure aligned with expectations, it reinforced fears of prolonged inflationary pressure.

The data added to already bearish sentiment sparked by large bitcoin whale sell-offs, which triggered the liquidation of leveraged positions, explained Vincent Liu, CIO of Kronos Research.

“Bitcoin’s key psychological support sits at $100K, with leveraged positions under pressure, highlighting fragile liquidity,” Liu said. He added that Ether’s major support stands at $4,000. “If these supports break, it could trigger a deeper drop and a broader liquidity crunch, though a full bear market would require a more sustained decline.”

NFP Data and FOMC Meeting in Focus

Traders are now closely watching this week’s non-farm payrolls (NFP) report, which could provide key signals for the Federal Reserve’s next policy move.

“A major surprise in job growth could trigger sharp market moves—strong numbers may weigh on crypto as risk appetite falls, while weaker-than-expected data could lift demand for digital assets,” Liu noted.

The FOMC meeting is scheduled for Sept. 16–17, with markets awaiting the Fed’s next interest rate decision. Despite sticky inflation, the CME FedWatch Tool still assigns an 87.6% probability of a 25 basis point cut this month.