Bitcoin declines amid economic uncertainty before remarks by Fed officials

Bitcoin fell sharply on Monday, retreating from the one-month high it reached last week, as investors ignored the Federal Reserve’s interest rate cut and waited for clearer signals on the US economy along with a flood of remarks from central bank officials on monetary policy.

The world’s largest cryptocurrency was last trading at $112,843, down 2.5% by 02:11 a.m. Eastern Time (06:11 GMT), after pulling back from last week’s peak near $118,000, its strongest level since mid-August.

Bitcoin ended last week largely steady, as caution about the future path of monetary easing offset gains driven by optimism over the Fed’s rate cut. In the meantime, altcoins suffered steeper losses on Monday, with Ethereum plunging by nearly 10%.

Sentiment in crypto markets also came under pressure after Praetorian Group International, a cryptocurrency trading company, pleaded guilty before the US Department of Justice to operating a Ponzi scheme that cost more than 90,000 investors at least $62 million.

Crypto markets are also facing investor doubts over corporate treasuries such as Strategy (formerly known as MicroStrategy – NASDAQ:MSTR), amid rising questions about their long-term sustainability.

Traders Await Fed Speeches to Map Rate Path

The decline came after the Fed cut rates by 25 basis points last week, which initially supported demand for risk assets by weakening the dollar and lowering financing costs.

But Fed Chair Jerome Powell’s balanced remarks following the decision, stressing that any future moves will depend on incoming economic data, curbed expectations of entering a strong easing cycle.

Investors are now awaiting comments this week from more than 10 Fed officials, including Powell, which could provide further clarity on the monetary policy outlook. The release of the core Personal Consumption Expenditures (PCE) price index – the Fed’s preferred inflation gauge – is also scheduled for Friday.

A hawkish tone is likely to pressure Bitcoin and other risk assets, while hints of additional cuts could reignite momentum.

Despite the recent pullback, Bitcoin remains up about 5% in September, supported by improving liquidity conditions. It has also gained more than 20% since the start of 2025, thanks to institutional inflows and optimism over broader adoption, but it is still well below its all-time high above $124,000 earlier this year.