After a strong weekend, crypto markets have pulled back, with Bitcoin falling below $110,500 – its lowest point in a month. Ethereum, which had reached an all-time high above $4,900 just two days ago, dropped under $4,500. XRP also declined to around $2.92, and Solana slipped below $190.
While the broader trend remains positive, the recent moves suggest a short-term correction across major assets.
Macroeconomic Pressure Returns
Several macroeconomic factors appear to be contributing to the decline. Uncertainty over the upcoming NVIDIA earnings report and the Federal Reserve’s interest rate policy have created a cautious mood in global markets.
The situation was further complicated by President Trump’s removal of Fed Governor Lisa Cook earlier today. That move affected U.S. stock futures and added to the general uncertainty. Crypto, though not directly linked to these events, often mirrors broader risk sentiment.
Read also: How Interest Rates Impact Bitcoin: Exploring the Correlation
Sentiment and Profit-Taking
The Fear and Greed Index has dropped to 48 – a neutral reading after spending most of the past month in the “greed” range. On-chain data also showed a large transfer of 24,000 BTC from a whale wallet, which briefly pushed Bitcoin below $109,000 before a partial recovery.
Another likely factor behind the pullback is simple profit-taking. Many assets recently reached multi-month highs or all-time highs, and some correction was expected. Bitcoin, Ethereum, XRP, and other major tokens had seen significant gains over the past few weeks.
Long-Term Outlook Remains Unchanged
Even with this pullback, the overall mood around crypto remains mostly positive. Institutional buying is still very active. Strategy just crossed over 3% of total Bitcoin supply, and Sharplink made a big moves on Ethereum. These are not retail traders trying to flip coins – these are big players placing long-term bets.
There’s also optimism about regulation. A new crypto framework is moving forward, and stablecoin rules are getting attention. At the same time, ETFs for major altcoins like XRP and Cardano are looking more and more likely, even with the recent delays.
Read also: SEC Postpones Decision on Multiple Crypto ETFs Until October
