Major coins were trading lower on Sunday evening as the global cryptocurrency market cap dropped 2.8% to $1.03 trillion at 8:11 p.m. EST.

Why It Matters: $Bitcoin (BTC.CC)$ and $Ethereum (ETH.CC)$ were in the red ahead of U.S. mid-term polls and as investors await consumer price inflation numbers slated for Thursday.

Other risk assets, such as stocks, were also in the negative zone. U.S. stocks were considerably lower — Nasdaq futures were down 0.7%, while S&P 500 futures fell 0.6% at the time of writing.

Friday's job report indicated that the participation rate fell slightly, a sign that higher rates are having some effect. The unemployment rate rose to 3.7%. A hotter-than-expected inflation number on Thursday could mean a pivot by the Federal Reserve on interest rates is further away.

A downshift to a slower pace of tightening still seems in the cards for the Fed and that should provide some short-term support for cryptos." 

- said Edward Moya, Senior Market Analyst at OANDA,in a recent note seen by Benzinga.

Michaël van de Poppe warned of high volatility and said that while the mid-terms might not move the markets a lot, the CPI figures will.

On Bitcoin, cryptocurrency trader Justin Bennett said that Bitcoin tested $21,400 resistance and any pullback from that will likely catch a bid around the $20,800 mark.

Going into the fresh trading week, investor sentiment was largely unchanged. Alternative.me's "Crypto Fear & Greed Index" flashed "Fear" at the time of writing. Last week the index showed a similar reading.

CryptoQuant CEO Ki Young Ju noted on Twitter that FTX's stablecoin reserve has touched a year-low of $51 million. A decline of 93% over the last two weeks.

A decreasing trend indicates fewer stablecoins are available in the exchange, which implies decreasing buying power — an indicator that supports bearish movements.