Sep 22, 2025
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Crypto Market Cap Falls to $3.8 Trillion as Bitcoin Hits $112,700
The cryptocurrency market experienced a downturn, with total capitalization nearing $3.8 trillion. Bitcoin (BTC) saw a significant correction, trading at $112,700.
- Ethereum (ETH), XRP, Solana (SOL), and Dogecoin (DOGE) recorded losses of 7%, 5%, 7%, and 10% respectively.
S&P 500 Rises While Crypto Market Slumps
- Crypto-related stocks also fell: Strategy (MSTR) dropped 2.6%, and Coinbase declined by 3.4%.
- The S&P 500 index gained 0.4%.
The slump is linked to excess leverage after the Fed's interest rate cut. Funding rates have increased, indicating speculative trading, leading to liquidations that worsened the market decline.
Deutsche Bank Predicts Bitcoin Recovery
- The Fed's rate cut is described as a "risk-management cut" by Chair Jerome Powell.
- Deutsche Bank strategist Marion Laboure predicts Bitcoin could exceed $120,000 by the end of 2025.
