Avalanche (AVAX) is facing a steep price correction today, Sept. 25, 2025. According to CoinGecko data, AVAX’s price has fallen 7.6% in the last 24 hours and 5.3% over the previous week. Despite the dip, the asset has maintained some of its gains from the upswing earlier, rallying 7.8% in the 14-day charts, 33.7% in the monthly charts, and 11.9% since September 2024. Avalanche’s recent rally was likely due to ETF applications.
Is Avalanche’s ETF Hype Dying?
While the ETF application news may have propelled AVAX’s price, it was not enough to maintain the price level. Investors may have eventually come under market sell pressure, booking profits after AVAX hit $35.
The latest market dip could be due to uncertainties around the Federal Reserve’s monetary policy. Although the Federal Reserve rolled out its first interest rate cut of 2025, the crypto market continues to slump. Investors are likely moving their funds to gold, which hit a new all-time high recently. Avalanche (AVAX) and other assets are likely facing heavy liquidations. According to CoinGlass data, nearly $400 million was wiped out from the crypto market in the last 24 hours.
Will The Asset Rebound Soon?
September has historically been a bearish month for the crypto market, while October has historically been bullish. We may see a similar pattern in 2025 as well. Avalanche (AVAX) could recover if the market follows the historical pattern.
There is also a very high chance that the Federal Reserve will announce another 25 basis point interest rate cut next month. Such a development could lead to a massive market-wide rally. Avalanche (AVAX) and other crypto assets could see a surge in inflows under such circumstances.
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There is also a possibility that macroeconomic factors will present challenges to Avalanche’s (AVAX) recovery.