Cryptocurrency Market Weekly Report

September 18 – September 25, 2025

1. Market Overview

From September 18 to September 25, 2025, the cryptocurrency market showed signs of consolidation and price fluctuation. After strong gains in previous weeks, Bitcoin (BTC) and Ethereum (ETH) experienced a pullback, with market sentiment turning more cautious. Here’s a breakdown of the performance of major assets:

Bitcoin (BTC): This week, Bitcoin's price fluctuated between $27,000 and $28,500, a drop from last week’s $29,500. Its current market cap is $540 billion, accounting for 42% of the total crypto market.

Bitcoin (BTC) Price & Volume Analysis

Price Range: $27,000 - $28,500 | Status: Correction

Ethereum (ETH): Ethereum ranged between $1,650 and $1,700, down about 6% from last week's $1,800. Its market cap stands at $200 billion, making up 16% of the total market cap.

Ethereum (ETH) Price & Volume Analysis

Price Range: $1,650 - $1,700 | Status: Correction

• Other Major Coins (e.g., BNB, XRP, ADA): These assets saw a pullback of 3%-6%, reflecting risk-averse sentiment in the market.

2. Key Market Drivers

1. Macro-Economic Environment

Global financial markets were heavily focused on the Federal Reserve's (Fed) monetary policy decisions this week. The Fed announced that it would keep interest rates unchanged but remained open to the possibility of future hikes. This led to a 0.8% increase in the US Dollar Index (DXY), which exerted pressure on crypto prices. Historical data shows that a stronger dollar often correlates negatively with crypto assets.

Additionally, persistent inflationary pressures and expectations of continued Fed tightening have reduced demand for high-risk assets, contributing to the market correction in crypto.

2. Regulatory Developments

The U.S. Securities and Exchange Commission (SEC) continues to take a stringent stance on crypto regulation, particularly regarding the approval of a Bitcoin ETF. The market expects a crucial decision within the next 1-2 months. Our models suggest that if the SEC approves the Bitcoin ETF, it could lead to a 10% short-term market surge.

In Europe and Asia, however, regulatory attitudes are more relaxed, especially towards Decentralized Finance (DeFi) platforms, which have led to sustained innovation. The total value locked (TVL) in DeFi has now exceeded $9 billion, a 15% year-over-year growth.

3. Technological Advancements

Ethereum’s Layer 2 scaling solutions, such as Optimism and Arbitrum, continue to attract capital and developers. Overall, transaction volumes have increased by 12% this week. Ethereum’s successful network upgrades have notably enhanced transaction speed and reduced fees.

Additionally, the demand for stablecoins like USDC and DAI has increased, driving up the market caps of these assets and fostering growth in the DeFi ecosystem.

3. Investment Strategy Recommendations

Given the current market uncertainties, we recommend the following strategies:

1. Diversification and Risk Management

Maintain a balanced asset allocation between Bitcoin and Ethereum, with 60% in Bitcoin, 30% in Ethereum, and 10% in other potential assets. This allocation helps mitigate the risks of market volatility.

2. Regular Portfolio Rebalancing

Due to high market volatility, investors should regularly rebalance their portfolios—ideally on a monthly basis. In times of extreme volatility, consider reducing exposure to higher-risk assets and increasing holdings in stablecoins.

3. Monitor Regulatory Developments and Market Liquidity

Regulatory uncertainty is one of the largest risks facing the crypto market. Stay updated on the Fed's monetary policy and the SEC’s stance on crypto regulation. Changes in market liquidity could also significantly impact price volatility, so use technical analysis and market data to make timely adjustments to your strategy.

4. Summary & Outlook

In conclusion, the cryptocurrency market is currently navigating macroeconomic pressures, regulatory uncertainties, and technological advancements, leading to a period of consolidation. We expect that major assets will continue to trade within a range in the coming weeks. Investors should monitor short-term market signals and adjust their portfolios based on macroeconomic trends to secure stable returns in an uncertain market environment.

Based on the current market performance and fundamentals, we advise focusing on technical indicators and adjusting investment strategies in line with economic developments.

Data References

• Bitcoin Market Cap: $540 billion
• Ethereum Market Cap: $200 billion
• DeFi Total Value Locked (TVL): $9 billion
• US Dollar Index (DXY): Increased by 0.8% this week