{"id":98724,"date":"2025-09-22T19:19:14","date_gmt":"2025-09-22T19:19:14","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=98724"},"modified":"2025-09-22T19:19:14","modified_gmt":"2025-09-22T19:19:14","slug":"bitcoin-ethereum-and-xrp-in-freefall-whats-driving-the-current-crypto-slump","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=98724","title":{"rendered":"Bitcoin, Ethereum, And XRP In Freefall: What\u2019s Driving The Current Crypto Slump?"},"content":{"rendered":"

The cryptocurrency market began the week with a notable downturn, as total sector capitalization dipped toward $3.8 trillion. Bitcoin (BTC), the leading cryptocurrency, experienced a significant correction, trading as low as $112,700.\u00a0<\/p>\n

CoinGecko data <\/a>shows that this decline had a ripple effect, causing major altcoins such as Ethereum (ETH), XRP, Solana (SOL), and Dogecoin (DOGE) to register losses of 7%, 5%, 7%, and 10%, respectively.<\/p>\n

S&P 500 Rises While Crypto Market Slumps<\/h2>\n

The selloff also impacted crypto-related stocks. Bitcoin investment firm Strategy (MSTR) saw a decline of 2.6%, while US-based crypto asset exchange Coinbase fell by 3.4% during afternoon trading. In contrast, the benchmark S&P 500 index managed to gain 0.4%, positioning itself for another potential all-time high.<\/p>\n

Analysts suggest that the recent market slump can be attributed to a buildup of excess leverage following last Thursday\u2019s Federal Reserve (Fed) decision to cut interest rates.\u00a0<\/p>\n

Adam Morgan McCarthy, head of research at Kaiko, indicated <\/a>that funding rates have risen since the Fed meeting, pointing to speculative trading that may have occurred in the wake of the rate cut.\u00a0<\/p>\n

He noted that the combination of excess leverage from speculative bets and an earlier price decline triggered a wave of liquidations, further exacerbating the market downturn.<\/p>\n

Deutsche Bank Predicts Bitcoin Recovery\u00a0<\/h2>\n

The Fed\u2019s decision to lower borrowing costs by a quarter point marked its first rate cut of 2025. However, as Barron\u2019s reported on Monday, Chair Jerome Powell characterized this move as a \u201crisk-management cut,\u201d implying a cautious approach rather than a wholesale easing of monetary policy.<\/p>\n

Despite the immediate challenges facing the cryptocurrency market, the longer-term outlook appears optimistic. Deutsche Bank strategist Marion Laboure expressed confidence in Bitcoin\u2019s recovery, predicting it could surpass $120,000 by the end of 2025.<\/p>\n

Featured image from DALL-E, chart from TradingView.com<\/p>","protected":false},"excerpt":{"rendered":"

The cryptocurrency market began the week with a notable downturn, as total sector capitalization dipped toward $3.8 trillion. Bitcoin (BTC), the leading cryptocurrency, experienced a significant correction, trading as low as $112,700.\u00a0 CoinGecko data shows that this decline had a ripple effect, causing major altcoins such as Ethereum (ETH), XRP, Solana (SOL), and Dogecoin (DOGE) […]<\/p>\n","protected":false},"author":0,"featured_media":98725,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-98724","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/98724"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=98724"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/98724\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/98725"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=98724"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=98724"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=98724"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}