The cryptocurrency market weakened following the recent Federal Reserve (The Fed) interest rate cut. Several major digital coins dropped beyond investors’ expectations.

According to Tokocrypto’s analysis, the rate cut by The Fed triggered greater caution among traders as it was interpreted as a sign of potential economic slowdown in the United States.

Trading data on Thursday (Sept 25, 2025) showed Bitcoin (BTC) priced at US$ 111,548, or about Rp 1.87 billion (exchange rate Rp 16,798). BTC declined by more than 4.7% over the past week.

The downturn also hit Ethereum (ETH), which plunged to US$ 3,990, a drop of roughly 11% compared to the previous week. XRP slid 6% to US$ 2.89, while Solana (SOL) recorded the steepest fall, plunging over 15% to US$ 203. BNB also slipped to US$ 988.

Tokocrypto analyst Fyqieh Fachrur explained that the pressure stemmed from massive liquidations in the derivatives market and a decline in spot BTC ETF inflows. Additionally, the strengthening US dollar and rising bond yields drove investors toward gold, which is now nearing US$ 3,800 per ounce.

Data from The Block indicated that BTC ETFs grew only about 2% since early August, while ETH ETFs surged 33% in the same timeframe. This growth outpaced ETH’s own price increase of 13% over the last two months, reflecting stronger demand for ETH-related products.

Even so, Fyqieh noted that a market slump following rate cuts is a typical occurrence.

“Markets often stagnate first before finding stability, then transition into a new growth phase a few months later,” he stated in a written release on Thursday (Sept 25, 2025).

He further highlighted that BTC is still in a consolidation phase, with strong support around US$ 111,000, despite significant selling pressure.

“While selling pressure is heavy, on-chain data shows BTC reserves on exchanges have fallen to this year’s lowest level of 2.4 million BTC. This indicates long-term holders’ confidence remains intact,” he explained.

Fyqieh said recovery potential remains open if BTC can break through the US$ 114,000 psychological barrier. In the short term, BTC trading volume remains weak, but if prices surpass US$ 118,000, the path toward US$ 125,000 would emerge.

Optimistically, BTC could even reach US$ 140,000 before year-end, although a deeper correction down to US$ 108,000 is still possible. Moving forward, Bitcoin is expected to remain the key driver of the crypto market’s direction.

“The modest gains we see now could mask a much larger rally, especially if institutional sentiment via ETFs strengthens again. However, if the main support level fails to hold, BTC may dip below US$ 110,000, which could drag altcoins even further down,” Fyqieh concluded.