Crypto Market Crash Explained

The Fed surprised markets with a 25 bps rate cut and more cuts hinted for 2025, yet Bitcoin has stalled around $117–120 K thanks to massive long liquidations (the biggest wipeout of 2025), a breakdown in its gold correlation, and lingering inflation fears. Despite a bullish macro backdrop—S&P 500 hitting all-time highs—crypto markets have whipsawed, leaving Bitcoin at key resistance levels and traders watching whale moves and liquidity dynamics closely.

Altcoin season looks delayed: the TOTAL2 index just got rejected at its prior ATH and the Altcoin Season Index slid from 100 to 65. Still, Q4 catalysts like potential alt-coin ETFs and the CLARITY Act could reignite rallies. Chainlink eyes a boost from a DOC partnership, XRP is 26 % shy of its record high, Avalanche and newcomer ENA show breakout setups, and Ethereum’s weekly structure raises some caution while institutions continue to accumulate.

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