Crypto markets are starting the week on a bearish note, with Bitcoin, Ethereum, and major altcoins under pressure despite the U.S. Federal Reserve’s 25 basis-point rate cut.
Bitcoin price today dropped sharply to $114,000 after the Fed announced a quarter-point rate cut. While traders initially expected lower interest rates to fuel a rally, volatility has remained contained, and capital flows into Bitcoin ETFs are slowing.
Market data shows that weekly Bitcoin trading volume fell to $43.7 billion, nearly 23% lower than average, signaling weaker conviction among both retail and institutional buyers.
Ethereum price is also under pressure, with accumulation stalling as institutions and whales withdraw from staking. Instead, ETH is moving onto centralized exchanges, increasing supply and adding to selling pressure. Ethereum network fees remain extremely low just 0.17 Gwei, in the 6th percentile range pointing to weak on-chain activity and subdued demand.
One of the biggest drivers of crypto prices in 2024 and early 2025 has been ETF inflows. However, the latest data indicate that Bitcoin ETF inflows are waning, with traditional investors reducing their exposure. This could threaten crypto’s deeper integration with Wall Street if the slowdown persists.
Stablecoin issuance and derivatives positioning also show a cautious stance, suggesting investors are preparing for turbulence ahead rather than piling in.
While Bitcoin struggles, altcoins like Ethereum (ETH) and Ripple (XRP) are facing even steeper declines, with capital rotating back into Bitcoin dominance. The Altseason Index crashed from 100 to just 67, highlighting weakening momentum for smaller-cap tokens.
The macro backdrop is amplifying the selloff:
Despite the bearish tone, some analysts see this as a calm before a decisive move. Bitcoin’s volatility structure shows short-term calm but steepening longer maturities a sign traders expect turbulence ahead.
Interestingly, Ethereum’s options market suggests downside hedging demand has collapsed and call options are regaining premiums, which could indicate traders are positioning for a rebound if macro conditions stabilize.
Binance founder Changpeng Zhao (CZ) added fuel to speculation, saying “maybe we haven’t hit the real bull market yet.”
His comments come as many traders question whether Bitcoin’s explosive 2025 rally is losing steam.
The market is down due to profit-taking after a strong rally, fears of persistent inflation limiting future Fed rate cuts, and a significant slowdown in institutional investments into Bitcoin ETFs.
Yes, despite a 25 basis-point cut, Bitcoin’s price fell as the move was already expected. The focus has shifted to future Fed policy and concerns that fewer cuts may come, which dampens risk-asset appetite.
Some analysts see this as a consolidation before a bigger move. While short-term sentiment is bearish, options markets suggest some traders are positioning for a potential rebound if macroeconomic conditions stabilize.
While most majors are down, Ethereum’s options market shows a shift. Demand for downside protection has collapsed while call options are gaining value, suggesting some traders are positioning for a potential rebound.
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