Core Insights - The cryptocurrency market experienced a significant downturn, with $1.62 billion in bullish bets lost in 24 hours, leading to Bitcoin dropping 2.3% to below $113,000 and Ethereum falling nearly 7% to just under $4,200, resulting in a total market capitalization decline of almost 4% to about $3.9 trillion [1][2]. Market Dynamics - The decline in crypto prices is attributed to the unwinding of leverage following the Federal Reserve's rate decision, compounded by historically lower trading volumes over the weekend, which exacerbated the market decline [2]. - Despite the downturn in cryptocurrencies, the S&P 500 saw a slight increase of 0.15% on the same day, indicating a divergence between stock and crypto market performance [2]. Market Sentiment - A tone of bearish exhaustion is emerging in the crypto markets, highlighted by Bitcoin's drop below its 50-day moving average of approximately $115,000, signaling potential fatigue among traders [3]. - Bitcoin's recent price movements follow a month of low volatility, even as the stock market reached record highs amid anticipated rate cuts from the Federal Reserve [4]. Price Trends - Following the Fed's rate cut, Bitcoin initially surged to nearly $118,000 but subsequently fell over the weekend, indicating volatility and uncertainty in the crypto market [5]. - The stagnation in Bitcoin's price is also linked to the rise of Bitcoin digital asset treasury companies, which may create skepticism about the sustainability of market optimism regarding their purchasing power [6].