Cryptocurrency Market Faces Sudden Downturn Amidst Heavy Selling Pressure!

According to PANews, the cryptocurrency market experienced significant selling pressure starting at 13:59 UTC+8, coinciding with the opening of the European market. Bitcoin faced a sharp decline of over 2% within minutes, followed by Ethereum, which dropped by 5%. Other cryptocurrencies were similarly affected, with Solana plummeting by 7% in just three minutes. This downturn occurred without any apparent catalyst.

source

From a broader perspective, Bitcoin recently fell to a critical level of 111,900, a threshold it has struggled to break in recent months. This level has historically prompted a rebound as buyers seize the opportunity to purchase at lower prices.

The Fed announced its first rate cut on Sept 17, effective Sept 18, trimming 25 bps to 4.00–4.25%. Fast forward to today, Bitcoin is trading around $113K, showing the market isn’t impressed.

The problem is simple: the cut was already priced in. Traders were betting on a stronger easing cycle, but Powell’s tone stayed cautious — sticky inflation, fewer cuts ahead, no big liquidity push. That mismatch flipped the move into a sell-the-news drop.

Options flow tells the story: puts flying off the shelves, volatility premiums spiking, liquidations knocking out leveraged longs. Yet perpetual funding is still positive, showing some bulls refuse to back down while $115K sits as a heavy profit-taking wall.

This isn’t rejection of rate cuts — it’s rejection of weak cuts. Until the Fed shows real intent to ease harder, every bounce looks like another trap waiting to spring.