The post Why Is The Crypto Market Dropping Despite a Fed Rate Cut? appeared on BitcoinEthereumNews.com.

Fed Chair Jerome Powell’s statement that a December interest rate cut is “far” from certain has stirred financial markets. The US Dollar Index (DXY) surged to its highest level since August. Meanwhile, major cryptocurrencies suffered declines despite the Fed’s latest rate reduction. This reaction, described by analysts as a “hawkish cut,” suggests the Fed aims to temper expectations for further monetary easing. The differing moves across asset classes highlight uncertainty about the economic outlook as October 2025 ends. Sponsored Understanding the Fed’s Hawkish Rate Cut Phenomenon On October 29, BeInCrypto reported that the central bank lowered its benchmark interest rate by 25 basis points. Moreover, the Fed revealed that it will end quantitative tightening (QT) on December 1, a major bullish sign for the crypto markets. Despite this, investor sentiment has worsened rather than improved. According to the latest data from BeInCrypto Markets, the crypto market is down 2% over the past 24 hours, with all top 20 coins in the red. Bitcoin (BTC) has slipped below the $110,000 mark, while Ethereum (ETH) has also lost the $4,000 mark. “On-chain metrics show weakening institutional demand. The Coinbase Premium Gap — which tracks the price difference between Coinbase and other exchanges — turned negative again, signaling fading US buying activity. Historically, a declining premium often precedes short-term corrections. Retail traders cheered the macro headlines, but large players stayed cautious,” an analyst highlighted. At the same time, DXY climbed to 99.7 points yesterday, its highest since August 2025. Technical analysts note that this could be a turning point, with the dollar showing a potential shift from bearish to bullish territory. Sponsored Investors typically expect lower interest rates to support riskier assets. However, this time, the strengthening dollar has put renewed pressure on crypto markets. The opposing trends deepen worries about the current…

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Filed under: News - @ October 31, 2025 5:25 am