{"id":14804,"date":"2025-10-30T16:25:04","date_gmt":"2025-10-30T16:25:04","guid":{"rendered":"https:\/\/bitunikey.com\/news\/why-is-bitcoin-price-crashing-right-after-federal-reserve-rate-cuts\/"},"modified":"2025-10-30T16:25:09","modified_gmt":"2025-10-30T16:25:09","slug":"why-is-bitcoin-price-crashing-right-after-federal-reserve-rate-cuts","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/why-is-bitcoin-price-crashing-right-after-federal-reserve-rate-cuts\/","title":{"rendered":"Why is Bitcoin price crashing right after Federal Reserve rate cuts?"},"content":{"rendered":"<div class=\"post-detail__content blocks\">\n<p class=\"is-style-lead\">Bitcoin price crashed for the fourth consecutive day, reaching its lowest level since Oct. 23 after the Federal Reserve delivered its second consecutive interest rate cuts and Donald Trump reached a trade deal with Xi Jinping.<\/p>\n<div id=\"cn-block-summary-block_c524d6d0c09c83adda68b10dd9ead2b5\" 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>Bitcoin price crashed after the Federal Reserve slashed interest rates.<\/li>\n<li>The interest rate decision was more hawkish than expected.<\/li>\n<li>It also dropped as bullish liquidations rose and a death cross neared.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<h2 class=\"wp-block-heading\">Bitcoin price crashed as investors sold the news<\/h2>\n<p>There are two main reasons why the Bitcoin (BTC) price crashed after the Federal Reserve slashed interest rates by 0.25%. First, the rate cut was not a surprise as most analysts and traders were expecting it. Odds of the rate cut stood at over 98% before it happened.<\/p>\n<p>Similarly, traders were expecting Donald Trump to reach a deal with Xi Jinping, especially after the recent statements by Scott Bessent and his Chinese counterpart.<\/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\">A successful meeting between President Trump and President Xi delivers a tactical de-escalation in US-China trade tensions.<br \/>The agreement includes a relaxation of rare earth export restrictions, additional purchases from America, and stronger Chinese enforcement on\u2026 <a rel=\"nofollow\" target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/t.co\/RmVpaUYVP9\">pic.twitter.com\/RmVpaUYVP9<\/a><\/p>\n<p>\u2014 Mohamed A. El-Erian (@elerianm) <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/twitter.com\/elerianm\/status\/1983853665375887785?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">October 30, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p>Therefore, Bitcoin price is falling as investors sell the news. This is a situation where investors buy an asset before a major even happens and then sell it when it happens.<\/p>\n<p>Second, Bitcoin price crashed because the Fed cut was more hawkish than what analysts were expecting. In his statement, Jerome Powell noted that a December rate cut was not guaranteed. As a result, odds of a December cut dropped from over 90% to 65%. This also explains why the stock market dropped after the cut.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<h2 class=\"wp-block-heading\">Rising Bitcoin liquidations\u00a0<\/h2>\n<p>Bitcoin price also crashed after the Federal Reserve cut interest rates because of the rising liquidations.\u00a0<\/p>\n<p>Data shows the 24\u2013hour Bitcoin liquidations jumped to over $483 million, representing a big share of the combined liquidations in the crypto industry. One trader on Hyperliquid suffered a $21.4 million wipeout.<\/p>\n<figure class=\"wp-block-image size-full\"><figcaption class=\"wp-element-caption\">Crypto liquidations jumped | Source: CoinGlass<\/figcaption><\/figure>\n<p>A liquidation happens when an exchange closes leveraged trades when they hit the margin call area.<\/p>\n<p>The rising liquidations coincided with the ongoing deleveraging among investors as Bitcoin\u2019s open interest in the futures market dropped to $73 billion from this month\u2019s high of $94 billion.<\/p>\n<h2 class=\"wp-block-heading\">Spot Bitcoin ETF outflows\u00a0<\/h2>\n<p>Meanwhile, the Bitcoin price crash happened as spot Bitcoin ETFs lost assets. Data compiled by <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/sosovalue.com\/assets\/etf\/us-btc-spot\" target=\"_blank\" rel=\"nofollow\">SoSoValue<\/a> shows that spot BTC ETFs shed over $470 million on Wednesday, bringing the net outflows this week to $118 million.<\/p>\n<p>Most of the outflows happened on Fidelity\u2019s FBTC, which shed assets worth over $164 million. Ark Invest\u2019s ARKB lost assets worth over $143 million, while BlackRock\u2019s IBIT lost $88 million.<\/p>\n<h2 class=\"wp-block-heading\">Bitcoin price nears death cross pattern\u00a0<\/h2>\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"3574\" height=\"2038\" src=\"https:\/\/bitunikey.com\/news\/wp-content\/uploads\/2025\/10\/1761841504_599_Why-is-Bitcoin-price-crashing-right-after-Federal-Reserve-rate.webp.webp\" alt=\"Bitcoin price\" class=\"wp-image-14430296\"><figcaption class=\"wp-element-caption\">BTC price chart | Source: crypto.news<\/figcaption><\/figure>\n<p>Technicals have also contributed to the ongoing Bitcoin price crash. The daily timeframe chart shows that the coin found rejection at $116,370 earlier this week.<\/p>\n<p>It is now about to form a death cross pattern, which happens when the 50-day and 200-day Weighted Moving Averages cross each other. Forming that pattern will point to more downside, potentially to $100,000 and below.<\/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>Bitcoin price crashed for the fourth consecutive day, reaching its lowest level since Oct. 23 after the Federal Reserve delivered its second consecutive interest rate cuts and Donald Trump reached&hellip;<\/p>\n","protected":false},"author":1,"featured_media":12092,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-14804","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\/14804","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=14804"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/14804\/revisions"}],"predecessor-version":[{"id":14805,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/14804\/revisions\/14805"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/12092"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=14804"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=14804"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=14804"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}