The broader crypto market finds itself in the grip of a formidable correction, with both Bitcoin and a range of altcoins enduring considerable selling pressure. In contrast, the S&P 500 continues its upward trajectory. However, experts are sounding alarms, suggesting that the index may be venturing into perilous territory reminiscent of conditions preceding historical economic crises, like the Great Depression in 1929 and the global financial meltdown in 2008. Moreover, the strengthening U.S. Dollar index threatens to further exert pressure on risk-on assets such as cryptocurrencies and equities.
Crypto Market Corrects Despite Fed Rate Cuts
Earlier this week, Federal Reserve Chair Jerome Powell announced a 25-basis point interest rate cut, marking a significant shift in U.S. monetary policy. However, the anticipated positive reaction in the crypto market has remained elusive, as it appears to have devolved into a sell-the-news event. Bitcoin (BTC) has struggled to maintain a daily close above $117,200, lingering below $116,000.
Meanwhile, major altcoins like Ethereum (ETH), XRP, Solana (SOL), and Dogecoin (DOGE) have all suffered losses exceeding 5% over the past week. According to data from Coinglass, the 24-hour liquidation figures have surged to an astounding $283 million, with $242 million attributed to long liquidations alone.
Interestingly, Bitcoin and the broader crypto market are starting to decouple from the S&P 500, which recently noted a new all-time high above 6,600 on September 19. Crypto analyst Ted Pillows has cautioned that the nearing triple witching expiration this September could ignite short-term market volatility. Accordingly, he forecasts a potential 15-20% correction in the altcoin market, impacting notable cryptocurrencies such as XRP, SOL, and DOGE.
S&P 500, Dollar Index Enter Dangerous Territory
While the S&P 500 edges higher in the wake of the Fed’s rate cuts, analyst Ted Pillows is raising red flags, asserting that the index is now traversing into rocky territory. He pointed out that the S&P 500 has touched its upper trendline resistance for only the third time in its history. Notably, these previous occurrences were linked to the emergence of the 1929 Great Depression and the 2008 financial crisis, raising concerns about what this could mean for the economy.
Pillows has also noted that the U.S. Dollar Index (DXY) appears to be bouncing back from a critical support level. Historically, a stronger dollar often brings bearish implications for risk-on assets, including cryptocurrencies, thereby further complicating the landscape for investors.
Despite these headwinds, Pillows believes that short-term challenges may pave the way for a brighter Q4, with analysts already speculating that Bitcoin could rally to $150,000 by the end of the year, signifying the onset of a robust altcoin season. He elaborated on potential price corrections, indicating that Bitcoin has an active CME gap around the $92,000 to $94,000 range, while Ethereum has a gap around $3,400 to $3,500. Pillows pointed out that historically, most CME gaps get filled before a significant upward movement, signaling that these corrections could be a precursor to another bullish phase.
$BTC has an active CME gap around $92K-$94K level.$ETH has an active CME gap around $3.4K-$3.5K level.
Most CME gaps are filled before a big move, so a correction could happen. pic.twitter.com/epaZIUb4cB
— Ted (@TedPillows) September 20, 2025
