- The Federal Reserve reduced interest rates by 0.25% on October 29, 2025.
- The cryptocurrency market declined following Federal Reserve Chair Jerome Powell’s speech despite the rate cut.
- Over $800 million in crypto liquidations occurred within 24 hours after the announcement.
- Bitcoin price dropped to around $108,000, down 3.7% in 24 hours and 4.7% over the past month.
- Economic concerns like slow job growth, rising inflation, and trade tensions contributed to the market downturn.
The Federal Reserve lowered interest rates by 25 basis points on Wednesday, October 29, 2025. Despite expectations for a positive effect on cryptocurrency prices, the market instead experienced a correction following the announcement and a speech by Fed Chair Jerome Powell.
Data from CoinGlass showed that the crypto sector saw $812.5 million worth of liquidations in the 24 hours after the rate cut. According to CoinGecko’s Bitcoin data, Bitcoin declined to approximately $108,000, falling 3.7% in one day, 2.1% over two weeks, and 4.7% in the past month.
In his speech, Jerome Powell remarked that job gains have slowed recently and employment risks have grown. He also noted that inflation “has moved up since earlier this year and remains somewhat elevated.” These factors may have tempered investor optimism despite the looser monetary policy.
Additionally, ongoing trade disputes between the U.S. and China have influenced market sentiment. Earlier in October, the cryptocurrency market experienced its largest single-day liquidation, which analysts linked to escalating trade tensions. A subsequent announcement of progress toward a trade deal briefly eased the market.
Overall, the current market decline reflects concerns about slowing economic growth, increased inflation, and global trade uncertainties. Without improvements in these broader conditions, the cryptocurrency market may continue to face downward pressure.
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