According to U.Today, the cryptocurrency market is currently experiencing significant selling pressure, with nearly $170 million reported in liquidations. Data from CoinGlass indicates that $160.67 million accounted for crypto liquidations, with a substantial portion, $136 million, representing bullish bets. Over the weekend, traders had leveraged long positions, with Bitcoin nearing $70,000 in Monday's trading session. However, this trend has reversed due to recent concerns about potential selling by the U.S. government and the outcome of the Federal Reserve meeting.

Bitcoin and the broader crypto market saw declines as traders reacted to signals that the U.S. government might sell parts of its considerable crypto holdings. Blockchain research firm Arkham Intelligence reported that a U.S. government-linked wallet transferred $2 billion in Bitcoin to a new address on Monday. Bitcoin dropped to a low of $65,875 on Tuesday before recovering slightly to trade around $66,330 at press time. On Monday, Bitcoin had approached $70,000 for the first time since mid-June. Most cryptocurrencies were also experiencing losses at press time.

Investors are closely watching the Federal Reserve's latest policy meeting, which is expected to provide crucial insights into the future direction of interest rates and monetary policy. The Federal Reserve's July meeting begins Tuesday and concludes Wednesday, with a monetary policy decision and a press conference by Fed Chairman Jerome Powell. Markets broadly expect the central bank to maintain steady interest rates this week, but many investors are hopeful that policymakers will offer new signals about the outlook for rates. Key economic data is expected to be released this Tuesday, followed by ADP's private payrolls report and the July jobs report, which includes nonfarm payrolls and unemployment statistics later this week.