Crypto Markets Slide After Fed’s Cautious Rate Cut Sparks Selloff
The cryptocurrency market capitalization dropped 3% to $3.16 trillion following the Federal Reserve's 25 basis point rate reduction. Bitcoin led the decline, falling below $90,000 as traders liquidated over $250 million in long positions within hours.
Federal Reserve Chair Jerome Powell's tempered outlook on future cuts triggered the selloff, with two FOMC members dissenting in favor of holding rates steady. The central bank's simultaneous announcement of $40 billion Treasury bill purchases starting December 12 created conflicting signals for risk assets.
Major cryptocurrencies including ethereum (ETH), Solana (SOL), and XRP mirrored Bitcoin's downward trajectory. Market participants had anticipated a bullish reaction to the rate cut, but the Fed's cautious messaging instead reignited volatility concerns across both traditional and digital asset markets.
