Recent decisions by the U.S. Federal Reserve are significantly impacting the cryptocurrency market. The statement that a rate cut in September is not feasible raises concerns among traders.
Unexpected Fed Announcement
A senior official from the Fed stated: **“With current data, there’s no case for a September rate cut.”** Inflation remains sticky, and the labor market shows resilience, providing the Fed little reason to ease its policy.
Bitcoin Technical Signals
Charts show two eerily similar **Bitcoin topping formations**. The first occurred in **late 2024** and ended with a sharp multi-month correction. Now, in **mid-2025**, Bitcoin's price is displaying the same pattern: repeated rejections at highs, followed by volatile downward movement. At current prices around **$112K–113K**, Bitcoin risks further decline.
Implications for Crypto Investors
The combination of a **hawkish Fed** and **bearish technicals** creates a risky scenario. Without a rate cut to inject liquidity, the cryptocurrency markets may continue to struggle, and Bitcoin could be on the verge of a steep retracement. Key levels to watch:
* **$110K** – crucial near-term support. A break below could trigger acceleration lower. * **$125K** – the resistance bulls need to reclaim to escape the topping pattern.
Unless the macro picture softens, Bitcoin looks set for more downside pressure in the coming weeks.
