Bitcoin dropped 1.6% to around $110,800 on Wednesday after Fed Chair Jerome Powell basically said the October rate cut might be the last one we’re getting this year. Ethereum got hit a bit harder, falling 2% to just above $3,930 . The total crypto market cap shed 1.8%.
Powell mentioned there are “strongly differing views” among Fed officials about future cuts but added there’s now “a growing chorus” thinking they should pause and wait before cutting again. That’s not what crypto traders wanted to hear since lower interest rates usually help risky assets like Bitcoin.
Still, this dip was nothing compared to that brutal October 10th flash crash that wiped out over $19 billion in positions. That was the biggest crypto liquidation event ever tracked by CoinGlass and happened right when Trump threatened China with 100% tariffs on top of existing ones. Bitcoin lost over $200 million in market cap and dropped nearly 10%, while Ethereum crashed almost 14%.
Trump walked back his aggressive stance a few days later, posting “Don’t worry about China; it will all be fine!” on Truth Social. Markets have stabilized since then, with Bitcoin trading around $110,000 and Ethereum near $4,000.
Traders are now watching Thursday’s meeting between Trump and Xi Jinping closely. The fluctuating macroeconomic situation is basically driving everything in crypto right now.
Conclusion
Bitcoin fell 1.6% to $110,800, and Ethereum dropped 2% to $3,930 after Fed Chair Powell hinted October’s rate cut may be 2025’s last amid a cautious monetary policy outlook.
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