The US Federal Reserve announced a third consecutive rate cut, causing a sharp downturn in the cryptocurrency market.
Fed Decision and Market Reaction
The US Federal Reserve cut interest rates for the third consecutive time by 25 basis points. However, unlike before, this move did not result in a positive reaction in the cryptocurrency market. The likely reason is Fed Chair Jerome Powell's hint that the central bank might halt further rate cuts due to concerning CPI data for October and November.
Bitcoin and Altcoin Price Decline
Bitcoin's price tumbled to a multi-day low of $100,250, and the decline seems far from over. Prices of altcoins such as XRP, DOGE, AVAX, and SHIB also fell significantly, with XRP among the poorest performers, briefly dropping below $2.2 before bouncing back to $2.3.
Overall Crypto Market Downturn
The total crypto market cap, which had already tumbled by $150 billion, lost another $200 billion and now stands at $3.650 trillion.
The cryptocurrency market remains volatile following the Fed's latest decision. Major liquidations and declined market cap underscore the sector's unpredictability.
