Why is Crypto Crashing Today After the Fed Rate Cut? Oct. 29

The crypto market is plummeting today, with Bitcoin sinking to $111,000 (from a high of $116,500 this week). Meanwhile, the total value of all tokens has dropped to $3.76 trillion. Ouch. 😬

  • The crypto market took a nosedive after the Federal Reserve rate cut. No surprises there. 🙄
  • Most coins took a hit, with liquidations skyrocketing by 75% to $557 million. Because why not add a little chaos to the mix?
  • The crash happened alongside a $164 million drop in open interest. Coincidence? Or just another Tuesday in crypto land? 🤷‍♀️

Almost every cryptocurrency was in the red today, with coins like Aster, Story, Cronos, and Conflux leading the charge. All dropping by over 5%. But hey, at least they’re consistent, right? 📉

Crypto is Crashing After the Fed Decision

The crypto market plummeted faster than your hopes for a smooth trading day after the Federal Reserve’s interest rate cut. In a totally predictable move, Jerome Powell and his pals dropped the rate by 0.25%, just like every analyst was expecting. Groundbreaking. 😏

As expected.
The focus now shifts to Chair Piwell’s press conference.

– Mohamed A. El-Erian (@elerianm) October 29, 2025

So now the official cash rate is between 3.75% and 4%. The lowest it’s been since 2022 when the Fed was hiking rates like there was no tomorrow to fight inflation. What a time to be alive. 🙄

Usually, crypto prices get a boost when the Fed cuts rates, since it stirs up a little “risk-on” enthusiasm. But today, investors decided to sell the news instead. Guess they forgot the classic: buy the rumor, sell the news. 😅

Oh, and to add to the drama, investors are also selling off the excitement surrounding the Donald Trump and Xi Jinping meeting at the APEC Summit. They’re allegedly going to sign a trade deal that may, or may not, solve all the world’s problems. Who knew soybeans were so political? 🌱

Soaring Crypto Liquidations

The other reason crypto is diving today? Liquidations. Because who doesn’t love a good liquidation on a Wednesday? 😜

Data from CoinGlass shows that the 24-hour liquidations spiked 75% to $554 million. Over 146,000 crypto traders were liquidated. Guess they were feeling lucky… until they weren’t. 😬

This sudden liquidation spike brings back memories of the $20 billion wipeout from earlier this month. Good times. Over 1.6 million traders got wiped out. That’s a lot of sad face emojis. 😢

And, just to sprinkle a little more salt in the wound, open interest in futures dropped to $164 billion, down from $228 billion. Everyone’s getting a little more conservative. In other news, long positions are 49% and short positions are 51%. Looks like people are finally catching on. 🙃

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2025-10-29 23:04