Cryptocurrency Market Stalls Despite Rate Cut: What’s Going On?

Paigambar Mohan Raj
three coins with a market crash background
Source: Watcher Guru

The cryptocurrency market showed signs of a bullish reversal yesterday, Sept. 18, 2025. However, the market seems to be stalling once again. An interest rate cut from the Federal Reserve had likely led to a spike in crypto inflows. Bitcoin (BTC) reclaimed the $117,000 mark, and other assets were following its trajectory. Binance’s BNB coin even climbed to a new all-time high of $1002. However, the upswing seems to have been short-lived. What’s going on?

Why Is The Cryptocurrency Market Down?

Bitcoin BTC Crash Red
Source: Hans Lucas / AFP via Getty Images

It is unclear why the cryptocurrency market is down today. Investor sentiment has still not fully recovered. According to Alternative, investor sentiment entered the “Greed” zone last week, but has since dipped to the “Neutral” zone.

Cryptocurrency sentiment down
Source: Alternative

Also Read: Bitcoin ETFs Bleed $51M as Institutions Pull Out Fast

It is also possible that market participants booked some profits after yesterday’s rally. While a rate cut was welcome, it is likely that investors are still not in a position to take a lot of risks. Cryptocurrencies are among the riskiest assets, and investors may be taking a cautious approach.

Will The Market Recover?

There is a very high chance that the cryptocurrency market will rebound once again. Many experts anticipate another interest rate cut from the Federal Reserve. Additional rate cuts will greatly increase the market’s chances of entering another bull run.

The cryptocurrency market will most likely follow Bitcoin’s (BTC) trajectory. BTC’s consolidation may have led other cryptocurrencies to face a similar fate. According to CoinCodex, BTC will enter another bullish phase over the coming months. The platform anticipates the asset to hit a new all-time high of $129,656 on Sept. 26, before facing a slight correction. CoinCodex then anticipates BTC to hit another new peak of $137,017 on Dec. 12. Hitting $137,017 from current price levels will lead to a rally of about 17.12%.

Bitcoin price prediction
Source: CoinCodex