Bitcoin Slides as Investors Await Fed Signals; Altcoins Plunge

Bitcoin prices fell sharply on Monday, retreating from last week’s one-month high as traders shifted focus from the Federal Reserve’s recent rate cut to upcoming economic cues. The leading cryptocurrency dropped 2.5% to $112,843 as of 02:11 ET, down from last week’s peak near $118,000, its strongest level since mid-August. Despite the pullback, Bitcoin remains up 5% in September and has gained more than 20% year-to-date, supported by institutional inflows and optimism about broader adoption. However, it still trades below its 2025 all-time high above $124,000.

Altcoins faced steeper losses, with Ethereum plunging nearly 10% to $4,141, its lowest in over a month, while XRP tumbled 8% to $2.76. Solana, Cardano, and Polygon also suffered significant declines, down 7.5%, 10%, and 11.5%, respectively. Meme coins weren’t spared, as Dogecoin shed over 12% and $TRUMP fell 9%.

Investor sentiment was further rattled by news that Praetorian Group International, a crypto trading firm, pleaded guilty to running a $62 million Ponzi scheme that defrauded more than 90,000 investors. Market caution also lingered over corporate treasury strategies such as Strategy (formerly MicroStrategy), as questions mount about their long-term sustainability.

Last week, the Fed cut rates by 25 basis points, initially boosting demand for risk assets by weakening the dollar. However, Fed Chair Jerome Powell’s cautious remarks suggested future moves would hinge on incoming economic data, cooling expectations of a rapid easing cycle. Traders now await speeches from over 10 Fed officials, including Powell, as well as Friday’s release of the PCE price index— the Fed’s preferred inflation measure. A hawkish tone could pressure Bitcoin and risk assets, while hints of more cuts may reignite bullish momentum.