Tuesday, 02 January 2024 12:17 GMT

Cryptocurrency Market Dips Sharply As Fed Signals Caution On Rate Cuts


(MENAFN- The Rio Times) The global cryptocurrency market endured a significant downturn on October 30, 2025, erasing gains and fueling investor caution, as the U.S. Federal Reserve's latest policy moves failed to ignite optimism.

The total market capitalization fell approximately 3% to $3.78 trillion, driven by a "sell-the-news" reaction following a 25-basis-point interest rate cut.

Fed Chair Jerome Powell's hawkish remarks on persistent inflation concerns amplified the sell-off, leading to over $1.1 billion in liquidations across exchanges.

Overnight into October 31, prices showed signs of stabilization, with Bitcoin trading near $109,000. Institutional flows reflected the pessimism: U.S. spot Bitcoin ETFs recorded net outflows of $488 million-the largest in two months-while Ethereum ETFs saw $46.5 million exit.

Analysts pointed to a strengthening U.S. dollar and stalled U.S.-China trade talks as additional pressures, though the Fed 's plan to end quantitative tightening by December offers potential liquidity support.



Major coins underperformed broadly. Bitcoin declined 1.83% to $109,273, Ethereum fell 2.92% to $3,823, XRP dropped 4.38% to $2.47, Solana slid 5.61% to $185, and Litecoin decreased 6.42% to around $92.
Altcoins volatile as Bitcoin posts decade worst monthly return
Altcoins displayed volatility, with standout gains in LAB (up 61% to $0.24 amid speculative momentum) and VELVET (up 16% to $0.23 on ecosystem developments).

Conversely, COAI plunged 32% to $1.84 due to sector rotations, CLANKER fell 20% to $106 after a prior surge, and HYPE dropped 11% to $44 amid declining fees.

Technical analysis of Bitcoin charts reveals a bearish short-term bias. The daily timeframe shows consolidation after failing to break above key moving averages, with RSI indicating weakening momentum.

The four-hour chart highlights oversold conditions, suggesting possible capitulation but downside risk below $108,300. October 2025 has proven challenging, marking Bitcoin's worst monthly return in over a decade.

Market sentiment remains guarded, with the Fear & Greed Index at 34. However, liquidity shifts could spur a rebound, underscoring the sector's sensitivity to macroeconomic signals.

MENAFN31102025007421016031ID1110275083



The Rio Times

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.

Search