The crypto market just took a serious hit, and traders are feeling the pain – Bitcoin fell to $110,900 after the Federal Reserve cut rates by 25 basis points. Even though it’s a move that should’ve helped crypto prices, not hurt them, Fed Chair Jerome Powell killed the mood when he mentioned that a December rate cut is “not automatic,” removing the certainty traders were counting on.
The damage was brutal – more than $1.1 billion got liquidated in just 24 hours, with long positions taking a $961.92 million beating. Traders who bet on continued rallies got crushed – and the biggest single wipeout was an $11 million Bitcoin long on Bybit, while major exchanges such as Binance and Hyperliquid saw hundreds of millions vanish.
So, what happened was that everyone expected the Fed to signal more cuts ahead – but instead, Powell basically said “not so fast.” The odds of a December cut dropped from 90% to just 71% on prediction markets like Polymarket. But that turn spooked traders who’d leveraged up, expecting easy money to keep flowing.
During all this chaos, crypto users have found some interesting alternatives. Many traders now use stablecoins such as USDT and USDC for online gaming platforms available in United States, enjoying fast withdrawals and amazing bonuses without Bitcoin’s price swings. They have a real speed and privacy of crypto while keeping your balance steady – but you can also choose between many other payment methods.
At the same time, the US and China keep dancing around trade issues, especially rare earth minerals, since they’re critical elements needed for everything from iPhones to fighter jets. Treasury Secretary Scott Bessent said the threatened 100% tariffs are “effectively off the table” as both sides claim they’ve reached a “preliminary consensus”. China controls nearly 70% of global rare earth mining, giving Beijing some serious leverage in these negotiations.
The timing stings because the Fed announced it’ll stop shrinking its balance sheet on December 1, which means more liquidity in the system. Well, that should help crypto prices eventually, but Powell’s hawkish tone drowned out the good news.
The new US-China framework has China easing export restrictions while the US applies a 55% tariff on Chinese imports, including 10% reciprocal, 20% for fentanyl problems, and 25% existing duties. All these complex negotiations show how trade fights now directly impact tech sectors and crypto markets.
Santiment notes that funding rates across exchanges have normalized, suggesting the excessive leverage got flushed out – and that could mean healthier price action ahead once the dust settles.
But until Powell clarifies the Fed’s direction and trade talks produce real results, we can expect more volatility ahead.
