Bitcoin Dips Below $90K As Markets Cautious Ahead Of Central Bank Week

Bitcoin traded below $90,000 in quiet Sunday trading as cryptocurrency markets consolidated amid a broader pullback in risk sentiment ahead of a busy week of central bank meetings and key macroeconomic releases. Crypto traders reduced exposure after a period of strong gains, reflecting rising caution as traditional markets brace for fresh policy signals.

The dip below $90K marked a notable moment for the crypto space, which had rallied in recent weeks on hopes of renewed Federal Reserve rate cuts and improving liquidity conditions. However, fading risk appetite ahead of major announcements—including U.S. inflation data and central bank guidance—prompted profit-taking and reduced leverage in futures markets.

Altcoins also saw weakness, with Ethereum and several large Layer-1 tokens moving lower alongside Bitcoin. Exchange open interest declined, signaling reduced speculative activity as traders awaited clearer policy direction. On-chain data showed modest accumulation from long-term holders, but overall trading volumes contracted, highlighting a market in stand-by mode.

Macro conditions contributed to the cautious tone as well. Traditional asset markets were muted, with equities and bond yields showing limited directional conviction ahead of expected central bank decisions later in the week. The U.S. dollar held firm against major peers, further pressuring risk assets that typically benefit from softer monetary policy expectations.

For traders, the key focus remains on how central bankers will respond to subdued inflation readings and mixed economic indicators. A dovish posture could reignite bullish momentum across risk assets, including Bitcoin. Conversely, any sign of reluctance to ease policy could extend the current consolidation phase. Monitoring volume, key support levels near $88,000, and the next technical test around $92,000 will help gauge whether Bitcoin’s recent pullback is temporary or a deeper correction signal.