The crypto market is sliding as investors brace for the Federal Reserve’s policy decision later today. The total market capitalization has dropped by more than 2%, sitting near $3.81 trillion, while the Crypto Fear and Greed Index has slipped to 39.
Markets Turn Red Before the Fed’s Rate Decision
The U.S. Federal Reserve is expected to announce its second interest rate cut of 2025 later today, with markets pricing in a 98% chance of a 0.25% reduction. While a rate cut is usually bullish for risk assets like Bitcoin and Ethereum, traders are holding back ahead of Fed Chair Jerome Powell’s comments on quantitative tightening (QT).
His tone will determine whether this cut signals a pause in the tightening cycle or the beginning of a longer easing phase. A dovish outlook could trigger a strong rebound, while a hawkish statement may deepen the current sell-off.
Bitcoin is trading around $112,600, down 2.5% in 24 hours. BTC is still holding within a wide range between $105,000 and $115,000.
Ethereum has fallen to $3,979, down 4.2% on the day. XRP, meanwhile, trades near $2.63 after a 1.2% dip, outperforming Bitcoin during the latest pullback. Despite short-term weakness, XRP continues to attract interest ahead of a potential ETF approval window between now and mid-November.
Most altcoins are also under pressure. Solana dropped to $200, Cardano slipped to $0.64, and Dogecoin declined more than 3%. The CMC20 Index, which tracks the top 20 cryptocurrencies, fell 2.7%.
However, some exceptions remain. Hedera (HBAR) surged nearly 18% after the debut of its spot ETF.
The Fed’s announcement later today will likely dictate the market’s next major move. If Powell signals continued rate cuts and easing liquidity conditions, Bitcoin and Ethereum could rebound sharply. On the other hand, any sign of extended tightening may lead to deeper corrections before recovery resumes.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
The crypto market is witnessing heightened volatility ahead of the upcoming FOMC decision, with Bitcoin…
The Bitcoin price today dropped suddenly below $110,000, falling by over 4% in a single…
The Federal Reserve has bent its knee to President Donald Trump’s request, amid the ongoing…
The Federal Reserve has cut interest rates by 25 basis points to support the economy…
Ripple Chief Technology Officer David Schwartz has confirmed that the company holds the legal right…
Grayscale Investments, the world’s largest digital asset-focused investment platform, announced that its Grayscale Solana Trust…
