Bitcoin fell sharply on Monday, retreating from last week's monthly high as investors ignored the Federal Reserve's interest rate cut and awaited more specific signals about the U.S. economy.
The latest price of the world's largest cryptocurrency was 2.5% lower at $112,843.0 as of 13:11 MSK, retreating from last week's peak near $118,000, the highest level since mid-August.
The token ended virtually unchanged last week as gains from optimism regarding the Fed's rate cut were offset by caution regarding future easing.
Meanwhile, altcoins showed a sharper decline on Monday, with Ethereum falling nearly 10%.
Sentiment in cryptocurrency markets was partially undermined by Praetorian Group International, a crypto trading firm, pleading guilty to the U.S. Department of Justice for running a Ponzi scheme that cost more than 90,000 investors at least $62 million.
Cryptocurrency markets are still grappling with investor doubts regarding corporate treasuries such as Strategy (formerly MicroStrategy (NASDAQ:MSTR)), amid growing concerns about their long-term viability.
Traders are waiting for speeches from Fed officials for insights on the future trajectory of rates.
The pullback followed the Fed's 25 basis point rate cut last week, which initially stimulated demand for riskier assets due to a weaker dollar and lower financing costs.
But the measured comments from Fed Chairman Jerome Powell after the decision, emphasizing that further steps will depend on incoming data, weakened expectations for an aggressive easing cycle. Investors are currently preparing for speeches this week from more than 10 Fed officials, including Powell, who may provide further clarification on the central bank’s policy direction. The PCE price index data — the Fed's preferred inflation measure — will also be released this coming Friday.
A hawkish tone is likely to pressure Bitcoin and other risk assets, while signals of additional cuts could reignite momentum.
Despite the recent pullback, Bitcoin rose about 5% in September, bolstered by improved liquidity conditions.
Bitcoin has risen more than 20% since the beginning of 2025, driven by institutional inflows and optimism regarding broader adoption, although it remains significantly below its all-time high of over $124,000 reached earlier this year.
Cryptocurrencies today: altcoins are falling; Ether and XRP are down 8%.
Most altcoins have fallen harder than Bitcoin as risk appetite remained weak.
The second-largest cryptocurrency in the world, Ethereum, fell 8% to $4,141.4, reaching its lowest level in over a month.
The third-largest cryptocurrency in the world, XRP, also fell 8% to $2.76, the lowest level in nearly three weeks. Solana dropped 7.5%, Cardano fell 10%, and Polygon declined 11.5%. Among meme tokens, Dogecoin lost more than 12%, while $TRUMP retreated 9%.
