In Tuesday's trading session, major cryptocurrencies demonstrated gains in tandem with a broad-based rally in stock markets and precious metals as participants approached the Federal Reserve's imminent policy decision. Bitcoin (BTC) saw an increase of 0.98%, reaching a price point above $89,000, while Ethereum (ETH) recorded a notable 2.84% rise, surpassing the $3,000 milestone. Dogecoin (DOGE) and Solana (SOL) also contributed positively to the sector's performance, with respective gains of 2.30% and 2.25%. Contrastingly, XRP maintained relative stability, declining marginally by 0.07% to $1.89.
The broader sentiment in the cryptocurrency space was characterized by mixed dynamics, with nearly $300 million in liquidations occurring within the preceding 24 hours. Notably, leveraged short positions accounted for approximately $230 million of these liquidations, signaling a significant shift in market positioning.
Institutional buying played a pivotal role in supporting Ethereum's rally, which surged past key resistance levels. Market participants observed a 3.12% gain in open interest within Bitcoin's derivatives market over the same period, indicating heightened engagement within futures and options contracts. Despite these encouraging signals, the Crypto Fear & Greed Index identified a prevailing atmosphere of caution, with 'Fear' sentiment currently dominating investor psychology.
Equities mirrored these developments, with the S&P 500 advancing 0.41% to reach a record closing high of 6,978.60. The technology-centric Nasdaq Composite outperformed slightly, gaining 0.91% to settle at 23,817.10. Conversely, the Dow Jones Industrial Average retreated by 408.99 points, or 0.83%, ending the day at 49,003.41.
Precious metals also rebounded robustly following Monday's declines. Gold achieved a new all-time peak at $5,174 per ounce, marking a 1.80% gain, while spot silver surged 7.50% to $113.91 per ounce, underpinning the broader risk-on sentiment across diverse asset classes.
Ahead of the Federal Reserve's upcoming policy announcement, market expectations, as reflected by the CME FedWatch tool, indicate over a 97% probability that interest rates will remain stable within the 3.5% to 3.75% range. This anticipated pause in monetary tightening has likely contributed to the cautiously optimistic positioning among investors.
Commenting on recent market movements, Arthur Azizov, founder and investor at B2 Ventures, emphasized Bitcoin's classification as a risk asset subject to performance fluctuations amid uncertain conditions. Azizov highlighted a consolidation phase for Bitcoin, projecting that the $85,000 to $88,000 zone would provide substantial support based on prior historical resilience during November and December 2025.
Complementing this perspective, Michael van de Poppe, a recognized cryptocurrency trader and analyst, pointed out Ethereum's "quick turnaround" on the ETH/BTC trading pair, interpreting this as a strong technical signal. Van de Poppe noted that Ethereum's ability to hold a crucial support level against Bitcoin suggests potential for continued appreciation, signaling underlying strength within the altcoin market segment.
Additional market specifics included movements across other cryptocurrencies with significant market capitalizations exceeding $100 million. Assets such as pippin (PIPPIN), Concordium (CCD), and Kinetiq Staked HYPE (KHYPE) registered substantial gains of 58.21%, 33.97%, and 26.49% respectively, underscoring pockets of high performance within the broader digital asset ecosystem.
The aggregate global cryptocurrency market capitalization reflected these gains, recovering to levels above $3 trillion, representing a 1.33% increase over the previous 24 hours. This marks a stabilization phase following recent volatility and suggests ongoing investor interest despite residual market apprehension.
Publicly traded companies involved in digital asset operations posted positive results as well. Strategy Inc. (NASDAQ:MSTR) shares closed up 0.62%, while Bitmine Immersion Technologies Inc. (NYSE:BMNR) experienced a 5.50% increase, indicating growing investor confidence in firms with direct exposure to cryptocurrency activities.
Market watchers continue to monitor the Federal Reserve's forthcoming policy statement closely, recognizing its potential to significantly influence risk assets, including cryptocurrencies and associated equities. The projected maintenance of current interest rates is anticipated to provide a near-term supportive environment for risk-taking, with subsequent market trajectories contingent on future policy guidance and economic indicators.