WASHINGTON (dpa-AFX) – Despite the Federal Reserve cutting interest rates by 25 basis points as generally anticipated, cryptocurrencies declined amidst a hawkish forward guidance by Fed Chair Jerome Powell. Overall crypto market capitalization dropped more than 4 percent in the past 24 hours in spite of the Fed also putting an end to its quantitative tightening measures in order to boost liquidity. Bitcoin dropped to a 24-hour low of $108,058 whereas Ethereum dropped below $3,800 during the same time span.
The Federal Open Markets Committee, in a widely expected move lowered the target range for the federal funds rate by quarter percentage point to 3.75 to 4 percent. The Committee reiterated its strong commitment to support maximum employment and returning inflation to its 2 percent objective. The Committee also decided to conclude the reduction of its aggregate securities holdings on December 1.
However, a cautious tone by the Fed Chair in the press briefing that followed the rate cut announcement spooked market sentiment. Markets had strongly expected another rate cut in the next review in December, but the Fed Chair’s comments ruled out any such guarantee, dampening market sentiment. The CME FedWatch tool, that a week ago showed a 91.1- percent likelihood of rates falling to 3.50-3.75 percent in December now shows only a 68.8 percent probability for the same.
With rate expectations drastically altered, aggregate crypto market capitalization declined 4.3 percent overnight. Only 2 of the top 100 cryptocurrencies have gained more than a percent overnight whereas 88 have declined more than 1 percent. In tandem, gold has slipped 0.50 percent overnight whereas the dollar strengthened 0.40 percent. The hardening of bond yields also weighed on sentiment. Yields on ten-year sovereign bonds in U.S., U.K., Germany, Spain and Italy have spiked more than a percent.
Gold Futures for December settlement is currently trading at $3,980.60 per troy ounce, implying overnight losses of 0.50 percent. The yellow metal has shed 3.8 percent in the past week but is holding on to gains of more than 51 percent on a year-to-date basis.
The 6-currency Dollar Index which measures the dollar’s strength against a basket of 6 currencies is currently at 99.62, versus 99.22 at the previous close. The index has gained 0.40 percent from the previous close. Massive outflows from crypto Spot ETF products in the U.S. also weighed on sentiment.
Bitcoin-based Spot ETF products in the U.S. witnessed outflows of $471 million on Wednesday versus inflows of $202 million on Tuesday. Fidelity Wise Origin Bitcoin Fund (FBTC) topped with outflows of $164 million.
Ethereum-based Spot ETF products witnessed outflows of $81 million on Wednesday versus net inflows of $246 million on Tuesday. Fidelity Ethereum Fund (FETH) topped with outflows of $70 million.
Bitcoin declined 4.5 percent overnight to trade at $108,458.62, around 14 percent below the all-time high of $126,198.07 recorded on October 7. The original cryptocurrency recorded losses of 0.6 percent over the past week and gains of more than 16 percent till date in 2025. The 24-hour trading range was between $113,642.72 and $108,057.61.
Ethereum also tumbled 5.2 percent overnight to trade at $3,818.60. Gains in 2025 have decreased to a little more than 14.5 percent. Ether’s current trading price is 23 percent below its all-time-high. The 24-hour trading range was between $4,031.26 and $3,799.97.
4th ranked XRP plunged 6.2 percent overnight at its current trading price of $2.49.
5th ranked BNB declined 1.7 percent overnight to trade at $1,098.57, around 20 percent below the all-time high.
The price of 6th ranked Solana decreased 6.9 percent overnight to $187.63. With losses of 0.84 percent, SOL is the highest-ranking cryptocurrency to trade with year-to-date losses.
8th ranked Dogecoin plunged 6.8 percent overnight and is currently changing hands at $0.1838. DOGE has lost 41.8 percent till date in 2025.
TRON ranked 9th overall lost 1.7 percent overnight and is currently changing hands at $0.2927.
10th ranked Cardano dropped 5.6 percent overnight to trade at $0.6182.
40th ranked MemeCore (M) that rallied 10.2 percent and 73rd ranked Aerodrome Finance (AERO) that added 4.6 percent are the only cryptocurrencies among the top 100 to gain more than a percent overnight.
97th ranked Plasma (XPL) topped overnight losses among the top 100 cryptocurrencies with a decline of 14.7 percent. 76th ranked SPX6900 (SPX) and 85th ranked DoubleZero (2Z) followed with overnight losses of more than 12 percent.
Despite expectations that October would be a bullish month for cryptocurrencies, only 14 of the top 100 cryptocurrencies have gained more than a percent over the past 30 days. On the contrary, 77 have declined more than a percent during the same period.
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