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The cryptocurrency market is experiencing a sharp pullback, leaving investors scratching their heads. Despite the U.S. Federal Reserve’s third consecutive 25 basis points (bps) rate cut, total market capitalization has tumbled 5.6% from yesterday’s highs, now hovering around $3.05 trillion. Bitcoin, Ethereum, and major altcoins are all in the red, signaling widespread caution among traders.

In this in-depth analysis, we’ll break down the key triggers behind today’s crypto dip, examine critical support and resistance levels, and explore what lies ahead for Bitcoin price and the broader market.

The Fed’s Rate Cut: Priced In, But Hawkish Vibes Dominate

The Federal Reserve’s decision to slash interest rates by 25 bps was widely anticipated. Markets had already baked this move into asset prices, so the cut itself sparked no euphoria. Instead, Fed Chair Jerome Powell’s post-announcement remarks stole the show.

Powell highlighted cooling labor market conditions alongside “somewhat elevated” inflation. This combination raised red flags for stagflation—a toxic mix of stagnant growth and persistent price pressures. Risk assets like cryptocurrencies and stocks reacted swiftly, with sentiment turning bearish.

• Total Crypto Market Cap (TOTAL): Down 5.6% to $3.05T, shedding nearly $179 billion since yesterday’s peak.
• 24-Hour Drop: Approximately 3%, underscoring buyer hesitation.

Stagflation fears are particularly damaging for crypto because they erode the appeal of high-risk, high-reward assets. Investors flock to safer havens when economic uncertainty looms, pulling capital away from volatile markets like digital currencies.

Bitcoin’s Battle: Holding $90K Amid Liquidation Storm

Bitcoin (BTC) has shed 2.5% over the past 24 hours but clings to the crucial $90,000 support level. This psychological floor has held firm despite intense selling pressure.

The post-Fed chaos triggered over $437 million in leveraged position liquidations within 12 hours, with Bitcoin accounting for more than $161 million. This aggressive unwinding amplified the downside, but BTC’s resilience suggests the structure isn’t broken—yet.

Bitcoin price chart: $90K emerges as key support after Fed-induced volatility.

Key Bitcoin Levels to Watch

Polymarket bettors have slashed the odds of Bitcoin reaching $100,000 by year-end to around 30%, reflecting dimmed expectations heading into late 2025.

Altcoins Under Pressure: Solana, Cardano Slide, Pump.fun Tanks

The bleed isn’t limited to Bitcoin. Ethereum is down 3.5%, Solana 6%, and Cardano 7%. Among top 100 tokens, Pump.fun (PUMP) leads the losers with a 9%+ plunge.

Pump.fun (PUMP) Analysis

PUMP has cratered 9.1% in 24 hours and 40% over the past month, trading near $0.0027. Heavy sell pressure persists, with an 11.99% drop from yesterday’s high.

• Downside Risks: $0.0026 (immediate), $0.0024 (major floor).
• Upside Targets: $0.0032 (early recovery), $0.0036 (key resistance).

A break below $0.0024 would confirm seller dominance, potentially extending the downtrend.

A Bright Spot: Terra (LUNA) Explodes 44%

Not all news is grim. The revived Terra 2.0 chain (now Terra LUNA) surged 44% in 24 hours, pushing its 7-day gains past 200%. Note: This is distinct from the legacy Terra Classic (LUNC).

This outlier highlights pockets of strength amid the sea of red, possibly driven by ecosystem developments or speculative fervor.

Market Cap Outlook: Critical Supports and Recovery Paths

Total market cap sits just above $3.01 trillion support. A breach here could cascade to $2.73 trillion. Conversely, reclaiming $3.24 trillion would signal bullish reversal.

Total crypto market cap: Testing $3.01T support amid Fed caution.

The Fed provided rate relief but no reassurance, leaving crypto in a tense trading environment. Broader equity markets echoed the caution, reinforcing the risk-off mood.

What’s Next for Crypto? Trading Strategies

1. Bulls: Wait for TOTAL above $3.24T and BTC over $94.6K before entering longs.
2. Bears: Eye breaks below $3.01T or $90K for short opportunities.
3. Long-Term Holders: View dips as buying chances if macro improves; stagflation remains the wildcard.

Keep monitoring upcoming economic data like jobs reports and inflation figures—they’ll dictate if this is a temporary dip or the start of something deeper.

Final Thoughts

Today’s crypto downturn stems from dashed expectations around the Fed’s rate cut, amplified by stagflation worries. While Bitcoin holds key supports, altcoins face steeper pressure. Stay vigilant: volatility is crypto’s middle name, and rebounds can be swift.

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Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.