The two largest coins rose at press time as the global cryptocurrency market cap increased 1.7% to $944.8 billion at 8:18 p.m. EDT on Monday.

$Bitcoin (BTC.CC)$ and $Ethereum (ETH.CC)$ were in the green, along with other risk assets, ahead of the U.S. Federal Reserve's policy meeting, which is set to commence on Tuesday.

The $S&P 500 index (.SPX.US)$ and $NASDAQ 100 Index (.NDX.US)$ futures were up 0.4% and 0.55%, respectively, at the time of writing.

The entire cryptoverse is vulnerable to surging borrowing costs and that risk remains front and center." 

- said OANDA senior analyst Edward Moya, in a note seen by Benzinga.

This week could be the catalyst that sends the market to pricing in peak Fed tightening. This could be the ripping the band-aid off moment for Bitcoin as selling pressure could get ugly here but that might be what is needed to form a bottom."

Justin Bennett said that Bitcoin is testing the $19,600 level. The trader tweeted, "Reclaim that on the daily chart, and things could get interesting."

There are still a lot of short liquidations up to $19,800 and even more at $20,500. We'll see, but so far, this looks like a v-bottom."

A "V-bottom" refers to a pattern that emerges when the price momentum turns from aggressive selling to aggressive buying — it is considered a bullish reversal pattern.

Michaël van de Poppe said that Ethereum is looking at "weakness" as it lost its "upwards trending structure." The cryptocurrency trader said on Twitter, "Expecting a response from the region between $1,200-1,300. Not sure whether we'll get a bounce towards $1,425 as FED on Wednesday is most important as a decider of a trend."

The discount between staked ETH and spot ETH has narrowed to the lowest levels since May. The trend indicates some risk premium is now off the table, according to Kaiko Research.

Staked ETH discount will likely persist until the next Ethereum upgrade enables staking withdrawals sometime next year." 

- said the market data provider in a note.

The opportunity costs of holding ETH have now increased (as staking offers additional rewards) which could provide some tailwinds for staked ETH markets."

Meanwhile, despite the cryptocurrency markets taking a hit over the past week, social interest is seeing a shift to Ethereum along with other altcoins such as XRP, Cardano, Polygon and Shiba Inu, said market intelligence platform Santiment on Twitter.