Bitcoin Price Falls Below $113K as Altcoins Tumble Amid Market Uncertainty
Bitcoin dropped sharply on Monday, pulling back from last week’s one-month high as traders shifted focus from the Federal Reserve’s rate cut to fresh economic signals.
The world’s largest cryptocurrency was last down 2.5% at $112,843 as of 02:11 ET (06:11 GMT), retreating from last week’s peak near $118,000, its strongest level since mid-August. Gains driven by optimism around the Fed’s policy easing were largely offset by caution over future rate cuts.
Altcoins saw even steeper losses. Ethereum plunged nearly 10%, while other major tokens such as XRP, Solana, Cardano, and Polygon also fell sharply. Sentiment was rattled after Praetorian Group International, a crypto trading firm, pleaded guilty to running a $62 million Ponzi scheme that defrauded over 90,000 investors.
Concerns also lingered over corporate treasuries such as Strategy (formerly MicroStrategy), with questions about their long-term stability weighing on confidence.
Focus Turns to the Fed
The declines followed the Fed’s 25-basis-point rate cut last week. While the move initially boosted demand for risk assets, Fed Chair Jerome Powell’s cautious comments signaled that future decisions will depend on incoming economic data.
This week, investors are watching speeches from more than 10 Fed officials, including Powell, for further policy guidance. Friday’s release of the core PCE price index, the Fed’s preferred inflation gauge, will also be key. A hawkish tone could pressure Bitcoin further, while hints of additional easing may lift demand.
Despite Monday’s drop, Bitcoin remains up about 5% in September and has gained over 20% in 2025, supported by institutional inflows and broader adoption. However, it still trades below its record high above $124,000 set earlier this year.
Altcoins See Deeper Losses
Ethereum slumped 8% to $4,141, its lowest in over a month. XRP also dropped 8% to $2.76, marking a three-week low. Solana fell 7.5%, Cardano plunged 10%, and Polygon sank 11.5%. Meme tokens were not spared, with Dogecoin losing over 12% and $TRUMP down 9%.
