Alvin Lang
Oct 31, 2025 19:03
The cryptocurrency market experiences a significant downturn following a Federal Reserve rate cut, with Bitcoin and Ethereum prices plunging and market liquidations rising.
The cryptocurrency market is experiencing a significant downturn, with Bitcoin (BTC) and Ethereum (ETH) prices plummeting, according to CoinMarketCap. This market turbulence follows a recent interest rate cut by the Federal Reserve, which has led to increased market volatility and substantial liquidations.
Impact of Federal Reserve’s Rate Cut
The Federal Reserve’s decision to cut interest rates by 0.25% to a range of 3.75% to 4.0% has triggered a bearish sentiment in the crypto market. The move, seen as hawkish by market participants, has resulted in a sharp decline in cryptocurrency prices. Bitcoin’s price fell to $108,000, while Ethereum slipped below $4,000. The overall market capitalization of cryptocurrencies saw a 4% decrease, dropping to $3.64 trillion.
Surge in Market Liquidations
The volatility has led to a significant increase in market liquidations, which jumped by 130% to over $1.3 billion. This surge in liquidations reflects the heightened uncertainty and fear among investors, as indicated by the Fear and Greed Index moving into the fear zone with a reading of 34.
Market Reaction and Future Outlook
Investors are closely monitoring the situation as the Federal Reserve’s actions continue to influence market dynamics. The unexpected rate cut has led to a reassessment of risk, prompting widespread sell-offs across the crypto market. Analysts suggest that market participants should brace for continued volatility as the full impact of the Federal Reserve’s policy changes unfolds.
For more insights on the current market situation, visit the CoinMarketCap.
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Source: https://blockchain.news/news/crypto-market-turbulence-fed-rate-cut-sell-off


