Bitcoin prices slipped on Monday, reversing last week’s advance as traders weighed the Federal Reserve’s cautious policy signals and awaited fresh economic data. The world’s largest cryptocurrency traded 2.5% lower at $112,843 as of 02:11 ET (06:11 GMT), pulling back from last week’s peak near $118,000, its strongest level since mid-August.
The decline comes after Bitcoin ended last week little changed, with optimism from the Fed’s 25-basis-point rate cut offset by concerns that further easing may be gradual. Despite the setback, Bitcoin remains up about 5% for September and 20% higher year-to-date in 2025, buoyed by institutional inflows and improved liquidity. Still, it remains well below its all-time high above $124,000 reached earlier this year.
Market sentiment was further rattled after Praetorian Group International, a crypto trading firm, pleaded guilty to running a $62 million Ponzi scheme impacting over 90,000 investors. The case deepened skepticism toward the sector, particularly regarding corporate treasuries like Strategy (formerly MicroStrategy), where questions persist over long-term sustainability.
Fed Guidance in Investor Spotlight
Crypto traders are now turning attention to the Fed’s messaging in the coming days. More than 10 Federal Reserve officials, including Chair Jerome Powell, are scheduled to speak this week. Their remarks, alongside Friday’s release of the personal consumption expenditures (PCE) price index, will be pivotal for risk assets.
- A hawkish tone would likely weigh on Bitcoin and altcoins by signaling slower rate cuts.
- A dovish outlook could rekindle demand for digital assets by lowering funding costs and weakening the dollar.
Powell’s post-cut comments last week emphasized that additional moves would hinge on data trends, cooling expectations of an aggressive easing cycle.
Altcoins Face Steeper Losses
While Bitcoin’s drop was moderate, major altcoins experienced heavier selling pressure. Ethereum, the second-largest cryptocurrency, tumbled 8% to $4,141, marking its lowest level in more than a month.
Other key moves included:
- XRP: Down 8% to $2.76, a three-week low.
- Solana: Fell 7.5%.
- Cardano: Dropped 10%.
- Polygon: Sank 11.5%.
- Dogecoin: Slipped over 12%.
- $TRUMP token: Down 9%.
The widespread decline underscored fading risk appetite, with speculative assets underperforming amid uncertain policy direction.