Bitcoin Drops Over 8%, Dragging Crypto Market Lower Ahead of Fed Rate Decision

• BTC fell over 8% on Tuesday, its biggest single-day percentage slide since FTX's collapse in November 2022 • Outflows from Bitcoin spot ETFs likely catalyzed the price drop • Ether (ETH) peaked at $4,000 after last week's upgrade, but has since declined to $3,130 • Crypto market looked overheated early in February, with high funding rates indicating excess leverage • Investors await Fed rate decision on Wednesday for insights into central bank's inflation outlook and rate cut timing