After months of insanely high price rises, the cryptocurrency market saw an unprecedented selloff on Thursday, September 25, with over $1.65 billion of cryptocurrencies redeemed across various exchanges. This sell-off has been triggered by the US Federal Reserve’s decision to cut interest rates in an effort to stimulate growth.
Bitcoin ETFs had already witnessed redemptions to the tune of $645 million prior to Powell’s speech at the Jackson Hole symposium on August 22, where he hinted at ‘policy adjustments’ to address inflation risks due to tariff adjustments.
The cryptocurrency market has seen a strong rally lately, with institutional investors choosing Ethereum ETFs over Bitcoin over the years. According to data from Coinglass, almost 4,00,000 traders decided to liquidate their holdings, with Bitcoin accounting for nearly half of that. Bitcoin’s market value has dropped below the $1,10,000 mark, while Ethereum has slipped under $3,900, marking one of the steepest slowdowns in the market.
📊 MARKET UPDATE: Over $1.1B has been liquidated from the crypto market in the last 24h. pic.twitter.com/maHxGBTzQx
— CoinDesk (@CoinDesk) September 25, 2025
Experts say investors are hedging for safety, especially since the GENIUS Act and other crypto-friendly legislations had helped fuel the record rise in values.
“Bitcoin and other crypto assets were already hovering in uncertain territory over the last couple of weeks, and so investors were already a little skittish trying to figure out what direction the market is going to take going into Q4” Juan Leon, a senior investment strategist at crypt asset management firm Bitwise, explained. “I think investors are just bracing into safety, and crypto assets are getting sold down as a result.”
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