On Monday, leveraged long positions worth $41.5 million in the bitcoin futures market were liquidated, marking the second largest daily long liquidation this month. The drop in bitcoin's price to under $29,000 and caution ahead of the US Federal Reserve policy announcement and US Core PCE inflation may have contributed to the liquidation.

However, investors remain optimistic about bitcoin's near-term trajectory, as evidenced by the pricing of bitcoin options markets and the cryptocurrency's positive technical outlook. Nonetheless, it should be noted that crypto is a high-risk asset class and this article is not investment advice.