"" Market Pulse: Fed Cut Triggers Massive Crypto Shakeout ""
The Federal Reserve’s latest 0.25% rate cut, bringing interest rates to the 3.75%–4.00% range, has stirred intense market volatility. What was expected to fuel bullish momentum instead sparked a sharp “sell-the-news” reaction. Over $817 million in crypto positions were liquidated within 24 hours as Bitcoin plunged below $110,000 now stabilizing near $108,000.
Fed Chair Jerome Powell’s cautious tone cooled investor optimism, warning that a December rate cut remains uncertain despite slowing economic growth and persistent inflation at 3%. The Fed also announced an end to quantitative tightening by December 1st, a move likely to inject long-term liquidity but keep near-term sentiment fragile.
With the US Dollar Index (DXY) showing signs of reversal above 100, risk assets face renewed pressure. Traders are now watching Bitcoin’s $110,000 support, a key level for potential rebound targets at $112,500–$115,000. A breakdown could expose $108,000–$106,000 zones.