Bitcoin and other major digital assets, including Ethereum, XRP, and Solana, slipped into negative territory on Monday as investors unwound bullish bets placed in the wake of the U.S. Federal Reserve’s recent interest rate cut.
At press time, Cardano was trending lower, BNB retreated, while Dogecoin and Tether (USDT) recorded sharp declines as traders adjusted their portfolios in response to shifting sentiment around the Fed’s decision.
The broader cryptocurrency market also faced selling pressure, with the total market capitalization plunging by 3.44% in the past 24 hours to $3.89 trillion, according to data from CoinMarketCap.
Last week had seen a strong rally across digital assets. Bitcoin surged from below $115,000 to touch a monthly high of $118,000 on Thursday, shortly after the Fed announced its first rate reduction of 2025. However, momentum quickly faded, with the flagship cryptocurrency dipping back to $115,000 by Friday and consolidating in the $115,000 to $116,000 range over the weekend.
As of Monday, Bitcoin was trading at $112,965, down 2.5% in the past 24 hours, according to CoinDesk. The asset now sits roughly 10% below the record high achieved just a month earlier.
Other leading tokens followed the downward trajectory. Ethereum shed 6.5%, Solana dropped 7.2%, and XRP slipped 5.6% over the same period, data from Kraken indicated.
Despite the sell-off, trading activity remained robust. Cryptocurrency investment products registered their second straight week of inflows, building on $3.3 billion in gains recorded the week before. Exchange-traded products (ETPs) brought in $1.9 billion last week, with Bitcoin accounting for $977 million and Ether adding $772 million, according to CoinShares. Solana and XRP also drew significant interest, attracting $127 million and $69 million respectively.
The Federal Reserve cut rates by 25 basis points last Thursday, marking its first policy easing in 2025. Fed Chair Jerome Powell described the move as a “risk-management cut,” stressing that the central bank would proceed cautiously rather than aggressively shifting toward looser monetary policy.
