Crypto markets have faced severe sell-offs amid panic and fear. Analyzing the situation reveals that certain events may have acted as catalysts for these fluctuations.
Market Panic
Last week, crypto markets experienced a significant shock driven by panic among traders. Analyst Ted (@TedPillows) believes the price drop was not organic but rather triggered by geopolitical fears and coordinated actions from major exchanges. After the markets closed, exchanges such as Binance and Coinbase allegedly started dumping assets, leading to further sell-offs. Millions in BTC, ETH, and SOL positions were wiped out, which Ted describes as a 'violent shakeout.'
Economic Factors and Fed Movements
Despite the chaos, Bitcoin managed to rise to $120,000 without any changes in Federal Reserve (Fed) policy. This move aligns with the rising M2 money supply, suggesting strong macroeconomic trends supporting growth. Ted predicts that the Fed will start cutting rates next month, which could boost investor confidence and liquidity. Upcoming changes in Fed leadership may also influence its policy direction.
Future of Crypto in Q4 2025
Looking toward Q4 2025, Ted sees several positive drivers for cryptocurrencies. If the Fed begins cutting rates and economic strength remains, assets such as BTC and ETH could surge. Additionally, improved regulatory clarity may support institutional investments. While short-term uncertainty persists, the long-term outlook appears promising for crypto bulls.
The crypto markets are undergoing a transformation due to recent sell-offs, but future economic conditions may create profitable opportunities for investors in Q4 2025.
