The post Why Is Crypto Crashing? Analyst Reveals What’s Next for BTC and ETH appeared first on Coinpedia Fintech News
The crypto market entered the week on a wave of optimism, anticipating that Federal Reserve rate cuts would trigger a rally. Instead, traders were left puzzled. Despite a rate cut and signals that quantitative tightening may soon end, both Bitcoin and Ethereum dropped sharply.
This reaction caught many off guard. Historically, lower interest rates and increased liquidity boost risk assets like crypto. However, this time the market didn’t follow the usual script. Analysts believe the selloff reflects a technical correction rather than a shift in fundamentals.
Bitcoin Holds Key Levels
Bitcoin began the week trading near $115,000 but quickly lost steam. Analyst DataDash noted that once BTC broke below the $114,000 support, a swift decline followed—a pattern often seen after extended rallies.
Currently, Bitcoin is expected to consolidate between $97,000 and $120,000 in the short term. This sideways movement signals uncertainty more than weakness. Once markets absorb the latest macro developments, a strong rebound could follow.
Fed Warning Adds Pressure
The Federal Reserve’s cautious tone also weighed on sentiment. Chair Jerome Powell hinted that further rate cuts are unlikely in December, emphasizing inflation concerns and economic stability. This conservative stance prompted risk-off behavior across financial markets, including crypto.
Still, analysts maintain a long-term bullish view. As quantitative tightening winds down, liquidity could improve by early 2026, potentially supporting higher crypto valuations.
Ethereum Mirrors Bitcoin’s Move
Ethereum mirrored Bitcoin’s trajectory. After briefly testing resistance near $3,900, ETH slipped back to the $3,700 range. Despite the pullback, analysts consider Ethereum’s structure healthy as long as it holds above $3,300.
In the near term, ETH may continue trading sideways. However, analysts see upside potential toward $5,000–$7,000 between November and early next year, driven by growing institutional adoption and the rise of tokenized assets.