The global crypto market dropped to $3.8 trillion as Bitcoin fell to $112,700, with altcoins and crypto-linked equities facing losses following the Fed’s first 2025 rate cut.
The cryptocurrency market began the week with a sharp downturn, bringing total capitalization near $3.8 trillion. Bitcoin dropped to $112,700, while Ethereum, XRP, Solana, and Dogecoin fell 7%, 5%, 7%, and 10% respectively. Coinbase declined 3.4% and MicroStrategy slipped 2.6%, in contrast to the S&P 500’s 0.4% gain. Analysts attribute the slump to excess leverage following the Federal Reserve’s 25 basis-point rate cut, its first of 2025. Kaiko’s Adam Morgan McCarthy highlighted speculative funding rate increases and cascading liquidations as key factors. Despite the pullback, Deutsche Bank strategist Marion Laboure forecast Bitcoin could surpass $120,000 by end-2025.