{"id":14700,"date":"2025-10-29T18:54:08","date_gmt":"2025-10-29T18:54:08","guid":{"rendered":"https:\/\/bitunikey.com\/news\/why-is-crypto-crashing-today-after-the-fed-rate-cut-oct-29\/"},"modified":"2025-10-29T18:54:19","modified_gmt":"2025-10-29T18:54:19","slug":"why-is-crypto-crashing-today-after-the-fed-rate-cut-oct-29","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/why-is-crypto-crashing-today-after-the-fed-rate-cut-oct-29\/","title":{"rendered":"Why is crypto crashing today after the Fed rate cut? Oct. 29"},"content":{"rendered":"<p><\/p>\n<div class=\"post-detail__content blocks\">\n<p class=\"is-style-lead\">The crypto market is crashing today, with Bitcoin price falling to $111,000, down from this week\u2019s high of $116,500, and the valuation of all tokens falling to $3.76 trillion.\u00a0<\/p>\n<div id=\"cn-block-summary-block_da62640a9018bd604a9265a042081d8f\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>The crypto market crashed after the Federal Reserve rate cut.<\/li>\n<li>Most coins dropped as liquidations jumped by 75% to $557m.<\/li>\n<li>The crash also happened as open interest dropped $164 million.\u00a0<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p>Most cryptocurrencies were in the red, with tokens like Aster, Story, Cronos, and Conflux being the top laggards after falling by over 5%.<\/p>\n<h2 class=\"wp-block-heading\">Crypto is crashing after the Fed decision\u00a0<\/h2>\n<p>The crypto market crashed as traders sold the Federal Reserve interest rate cut. In a statement, officials, led by Jerome Powell, slashed interest rates by 0.25% as most analysts were expecting.<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\">\n<div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">As expected.<br \/>The focus now shifts to Chair Piwell\u2019s press conference. <a rel=\"nofollow\" target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/t.co\/8aLOWTJ8Fk\">https:\/\/t.co\/8aLOWTJ8Fk<\/a> <a rel=\"nofollow\" target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/t.co\/Aih3baFaIf\">pic.twitter.com\/Aih3baFaIf<\/a><\/p>\n<p>\u2014 Mohamed A. El-Erian (@elerianm) <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/twitter.com\/elerianm\/status\/1983596538028028305?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">October 29, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p>This interest rate cut brought the official cash rate to between 3.75% and 4%, the lowest level since 2022 when the bank was hiking rates as inflation jumped.<\/p>\n<p>Cryptocurrency prices do well when the Federal Reserve is cutting interest rates as this normally stimulates a risk-on sentiment among market participants.<\/p>\n<p>Therefore, the crypto market is crashing today as investors sell the news as the rate cut was in line with expectations. This is a situation known as <em>buying the rumor and selling the news.<\/em><\/p>\n<p>Investors are also selling the Donald Trump and Xi Jinping meeting at the APEC Summit. The two leaders are expected to sign a trade deal that de-escalates the current crisis. Indeed, China has already started buying US soybeans in a major political victory for Trump.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<h2 class=\"wp-block-heading\">Soaring crypto liquidations\u00a0<\/h2>\n<p>The other main reason why the crypto market is going down today is that liquidations jumped on Wednesday.<\/p>\n<p>Data compiled by CoinGlass shows that the 24-hour liquidations jumped by 75% to $554 million. Over 146,000 crypto investors were liquidated in the past 24 hours, with Ethereum (ETH) and Bitcoin (BTC) accounting for a big share.<\/p>\n<p>This liquidation sent memories of the $20 billion wipeout that happened earlier this month. Over 1.6 million traders were wiped out.<\/p>\n<p>The rising liquidations coincided with the ongoing deleveraging among investors. Data shows that the futures open interest has dropped to $164 billion, down from $228 billion earlier this month.<\/p>\n<p>More data shows that more traders in top exchanges have turned bearish, with longs being 49% and shorts being 51%.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The crypto market is crashing today, with Bitcoin price falling to $111,000, down from this week\u2019s high of $116,500, and the valuation of all tokens falling to $3.76 trillion.\u00a0 Summary&hellip;<\/p>\n","protected":false},"author":1,"featured_media":2316,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-14700","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/14700","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=14700"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/14700\/revisions"}],"predecessor-version":[{"id":14701,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/14700\/revisions\/14701"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/2316"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=14700"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=14700"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=14700"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}