Cryptocurrency
Bitcoin Slips Below $114,500 as FOMC Rally Fades: Is the Bull Cycle Over?
Ethereum, meanwhile, risks deeper losses if it fails to hold above $4,232, with support seen near $3,593. XRP and Solana also face bearish momentum after closing below their 50-day averages.
The cryptocurrency market stumbled over the weekend as Bitcoin (BTC) slipped below $114,500, retreating from its post-FOMC rally highs. The drop marked a 1% decline in 24 hours, bringing BTC to around $112,700 late Sunday.
Ethereum (ETH) also retreated, down 3.3% to $4,307, while XRP slipped 2.5% to $2.91 and Solana (SOL) fell 3.2% to $232.50. The correction signaled that the excitement following the U.S. Federal Reserve’s 25 basis point rate cut had lost momentum.
“The market dipped slightly over the weekend as traders remain cautious in an uncertain macro environment,” said Jeff Mei, COO at BTSE.
Federal Reserve Cues and Investor Sentiment
The Federal Reserve’s September decision was initially seen as a turning point for risk assets. Bitcoin surged toward $118,000 earlier in the week, fueled by expectations of looser monetary policy. However, Federal Reserve Chair Jerome Powell clarified that future cuts would be assessed on a “meeting-by-meeting basis”, dampening hopes for aggressive easing.
Jerome Powell framed the decision as a “risk management move”, emphasizing that the Fed was not in a rush to slash rates further. For crypto markets, which often thrive on liquidity-driven momentum, this left investors reassessing their strategies.
Chair Powell reads opening statement at the #FOMC press conference on September 17, 2025: https://t.co/lEyHlI7RKs
— Federal Reserve (@federalreserve) September 17, 2025
Is the Bull Market Losing Steam?
Some analysts believe the explosive rally seen earlier this year may be losing strength.
“The fireworks from earlier this year have fizzled,” said Rachael Lucas, a crypto analyst at BTC Markets. “Investors are cautious. Long-term holders aren’t panicking, but short-term traders are restless.”
On-chain data indicate that long-term holders remain committed, with minimal selling pressure despite recent price weakness. Lucas described the mood as one of “nervous optimism”—cautious but not fearful.
Lucas also stressed that this pullback does not mark a full reversal: “Long-term holders are still in, but traders are waiting for a breakout above $124,000 to confirm the next leg up.”
Key Levels and Potential Catalysts
Technical indicators suggest that Bitcoin’s 50-day EMA support around $114,000 could be crucial. A decisive close below this level may open the door to further downside toward $107,000, according to FXStreet analysts.
Ethereum, meanwhile, risks deeper losses if it fails to hold above $4,232, with support seen near $3,593. XRP and Solana also face bearish momentum after closing below their 50-day averages.
Looking ahead, analysts highlight several potential catalysts that could reignite the crypto rally:
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Approval of spot Bitcoin ETFs in new regions
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Rising institutional demand from corporations and funds
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Potential sovereign adoption of Bitcoin as a reserve asset
For now, Bitcoin and its peers remain in a consolidation phase, caught between cautious optimism and macroeconomic uncertainty. While traders wait for the next breakout signal, long-term holders continue to bet on crypto’s resilience.
Whether this pullback is a pause in the bull cycle or the start of a deeper correction will likely hinge on the Federal Reserve’s next move—and whether new adoption sparks the next leg higher.
