As of early evening on Oct. 26, the broader cryptocurrency market extended its losing streak amid fading risk appetite. Notably, Bitcoin (BTC -0.47%) fell 0.28% to $79,817.06, Ethereum (ETH -1.00%) fell 0.58% to $2,313.61, and Solana (SOL -0.99%) fell 0.94% to $100.30.

What’s driving crypto markets

The recent selling across crypto markets appears to be driven by two main factors.

First, traders are reducing their exposure ahead of the Federal Reserve’s interest rate decision on Oct. 28. Investors often become more cautious leading up to major economic announcements, particularly when the outcome could influence interest rates and broader market sentiment.

Second, the crypto market is coming off a strong finish to the third quarter, with…