The cryptocurrency market is moving into the week on shaky footing, with investors nervously eyeing the Federal Reserve’s upcoming rate decision and a rare alignment of market expirations in U.S. equities. What looked like the start of an altcoin rally has quickly morphed into a correction, with over $240 million in liquidations hitting traders as sentiment cools.

Altcoins Lead the Retreat

XRP, Solana, and Dogecoin — the same names that led last week’s charge — are now dragging the market lower. Analysts warn they could fall another 15–20% if history is any guide. Bitcoin, meanwhile, is holding closer to $116,000, giving it an edge as capital retreats from higher-beta assets.

Why Macro Events Matter Now

The Fed’s decision this week is expected to deliver the first of several interest-rate cuts before year-end. While lower borrowing costs often fuel appetite for risk, traders say the news has already been priced in, setting the stage for “sell-the-news” volatility.

Complicating matters is September’s triple witching — the quarterly event when equity options and futures all expire together. Historically, the S&P 500 has struggled in the week that follows, with average returns of around -1.17% since 2000. That weakness in stocks, says analyst Ted Pillows, often spills over into digital assets.

Altcoin Season Delayed, Not Cancelled

The optimism for a so-called “alt season” isn’t gone — just postponed. The Altcoin Season Index recently touched 84, a level that typically signals Bitcoin is losing dominance. But technical charts show BTC.D bouncing from support near 57.5%, suggesting Bitcoin could regain ground toward 60% dominance before altcoins take the lead again.

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If that plays out, the real breakout in altcoins may not arrive until late 2025 or early 2026, when multiple Fed cuts and stronger liquidity conditions align. Analysts argue that’s when a parabolic rotation into altcoins could truly begin.

The Takeaway

Crypto’s near-term fate is tied less to blockchain fundamentals and more to the same macro forces shaping global markets. With Fed policy easing on the horizon and equity markets heading into a volatile expiration week, Bitcoin looks set to remain the defensive anchor, while altcoins wait for a more favorable backdrop to reignite momentum.

The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.

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