In a move that was widely expected, the Federal Reserve has reduced interest rates by 25 basis points. However, the cryptocurrency market experienced a downturn, reacting to the hawkish forward guidance provided by Fed Chair Jerome Powell. The overall crypto market capitalization has seen a decline of over 4 percent in the last 24 hours, even as the Fed has concluded its quantitative tightening measures to enhance liquidity. Bitcoin experienced a decline, hitting a 24-hour low of $108,058, while Ethereum fell below the $3,800 mark in the same timeframe. The Federal Open Markets Committee, in a move that many anticipated, has lowered the target range for the federal funds rate by a quarter percentage point, bringing it to a range of 3.75 to 4 percent. The Committee reaffirmed its unwavering dedication to fostering maximum employment while striving to bring inflation back to its 2 percent target. The Committee has reached a decision to finalize the reduction of its total securities holdings on December 1. However, the cautious tone expressed by the Fed Chair during the press briefing that followed the rate cut announcement unsettled market sentiment. Markets were anticipating another rate cut in the upcoming December review, but the Fed Chair’s remarks eliminated any certainty, leading to a decline in market sentiment. Reports indicated a 91.1 percent likelihood of rates dropping to 3.50-3.75 percent in December, now reflects only a 68.8 percent probability for that outcome.
In light of significantly shifted rate expectations, the aggregate crypto market capitalization experienced a 4.3 percent decline overnight. In a striking overnight shift, merely 2 of the top 100 cryptocurrencies have managed to gain over a percent, while a staggering 88 have experienced declines exceeding 1 percent. In a simultaneous move, gold has declined by 0.50 percent overnight, while the dollar has gained strength, rising by 0.40 percent. The increase in bond yields has also impacted market sentiment. Yields on ten-year sovereign bonds in the U.S., U.K., Germany, Spain, and Italy have surged by over a percent. Gold Futures for December settlement are currently trading at $3,980.60 per troy ounce, reflecting overnight losses of 0.50 percent. The yellow metal has experienced a decline of 3.8 percent over the past week, yet it maintains an impressive year-to-date gain of over 51 percent. The 6-currency Dollar Index, which gauges the dollar’s strength against a selection of six currencies, stands at 99.62, compared to 99.22 at the last close. The index has surged by 0.40 percent compared to the previous close. Significant outflows from crypto Spot ETF products in the U.S. have also impacted sentiment negatively. On Wednesday, Bitcoin-based Spot ETF products in the U.S. experienced significant outflows totaling $471 million, contrasting with the inflows of $202 million recorded on Tuesday. Fidelity Wise Origin Bitcoin Fund experienced significant outflows, totaling $164 million.
On Wednesday, Ethereum-based Spot ETF products experienced outflows totaling $81 million, contrasting with the net inflows of $246 million recorded on Tuesday. Fidelity Ethereum Fund experienced significant outflows, totaling $70 million. Bitcoin experienced a drop of 4.5 percent overnight, now trading at $108,458.62, which is approximately 14 percent lower than its all-time high of $126,198.07 reached on October 7. The original cryptocurrency experienced a decline of 0.6 percent over the last week, while it has seen gains exceeding 16 percent year-to-date in 2025. The trading range over the past 24 hours fluctuated between $113,642.72 and $108,057.61. Ethereum experienced a decline of 5.2 percent overnight, now trading at $3,818.60. The projected gains for 2025 have dipped to just over 14.5 percent. Ether is currently trading at a price that is 23 percent lower than its all-time high. The trading range over the past 24 hours fluctuated between $4,031.26 and $3,799.97. XRP, currently ranked 4th, experienced a significant drop of 6.2 percent overnight, now trading at $2.49. 5th ranked BNB saw a decline of 1.7 percent overnight, trading at $1,098.57, which is approximately 20 percent below its all-time high. The 6th ranked Solana saw a decline of 6.9 percent overnight, bringing its price down to $187.63. SOL, experiencing losses of 0.84 percent, stands out as the top-ranking cryptocurrency facing year-to-date declines. The 8th ranked Dogecoin experienced a significant drop of 6.8 percent overnight, now trading at $0.1838.
DOGE has experienced a decline of 41.8 percent year-to-date in 2025. TRON, currently holding the 9th position overall, experienced a decline of 1.7 percent overnight and is now trading at $0.2927. Cardano, currently holding the 10th rank, experienced a decline of 5.6 percent overnight, bringing its trading price down to $0.6182. In the latest market movements, 40th ranked MemeCore surged by 10.2 percent, while 73rd ranked Aerodrome Finance saw an increase of 4.6 percent. These two cryptocurrencies are the only ones in the top 100 to achieve gains exceeding one percent overnight. Plasma, currently sitting at the 97th rank, managed to recover from overnight losses, although it still faced a decline of 14.7 percent among the top 100 cryptocurrencies. 76th ranked SPX6900 and 85th ranked DoubleZero experienced overnight declines exceeding 12 percent. In a surprising turn of events, October has not delivered the bullish momentum many anticipated for cryptocurrencies. Out of the top 100 cryptocurrencies, merely 14 have managed to secure gains exceeding one percent in the last 30 days. Conversely, 77 have experienced a decline of over one percent during this timeframe.