Bitcoin plummeted on Monday, retreating from last week's one-month high, as investors ignored the Federal Reserve's interest rate cut and waited for 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 1:11 p.m. Moscow time, retreating from last week's peak near $118,000, which is the highest level since mid-August.
The token ended virtually unchanged last week, as gains from optimism about the Fed's rate cut were offset by caution about future easing.
Meanwhile, altcoins showed a sharper decline on Monday, with Ethereum falling by almost 10%.
Sentiment in the cryptocurrency markets was partially undermined by the fact that Praetorian Group International, a crypto trading firm, pleaded guilty to the US Department of Justice for running a Ponzi scheme that cost more than 90,000 investors at least $62 million.
Cryptocurrency markets are also still grappling with investor doubts about corporate treasuries such as Strategy (formerly MicroStrategy (NASDAQ:MSTR)), amid growing questions about their long-term viability.
Traders are waiting for the speeches of the Fed representatives to receive information 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 Fed Chairman Jerome Powell's measured comments after the decision, emphasizing that further steps would depend on incoming data, dampened expectations of 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. Data from the PCE price index, the Fed's preferred measure of inflation, will also be released this coming Friday.
A hawkish tone is likely to put pressure on Bitcoin and other risky assets, while signals of additional cuts may accelerate momentum again.
Despite the latest pullback, Bitcoin rose by about 5% in September, helped by improved liquidity conditions.
Bitcoin has grown by more than 20% since the beginning of 2025, boosted by institutional inflows and optimism for broader adoption, although it remains well below its all-time high above $124,000 reached earlier this year.
Cryptocurrencies Today: Altcoins Fall; Ether, XRP Fall by 8%
Most altcoins fell more than Bitcoin as risk appetite remained weak.
The world's second largest cryptocurrency, Ethereum, dropped 8% to $4,141.4, reaching its lowest level in more than a month.
The world's third largest cryptocurrency, XRP, also dropped 8% to $2.76, the lowest in almost three weeks.
Solana dropped 7.5%, while Cardano dropped 10% and Polygon dropped 11.5%.
Among the meme tokens, Dogecoin lost more than 12%, while $TRUMP retreated by 9%.