Crypto markets are getting hammered right now, which is pretty weird because the news has actually been decent lately. The US just eased some tech restrictions on China, and in return China lifted their controls on rare earth minerals that are needed for electronics and defense stuff.
Usually when America and China stop fighting, it helps crypto go up, but not this time. The Federal Reserve did cut rates by a quarter point, but then Jerome Powell went and basically said officials cannot agree on whether they will cut again in December or not.
Powell mentioned inflation is still sitting above where they want it at 2%, and they are having a tough time balancing jobs and stable prices. This really freaked people out and caused massive sell-offs, with over a billion dollars in liquidations happening in just one day.
Bitcoin tanked below 110,100 and broke through a key support line that traders watch closely. Some folks are getting worried we might see something like what happened back in 2019 when Bitcoin crashed 35% after the Fed stopped tightening.
The thing is, there’s usually this awkward gap between when the Fed stops pulling money out of the system and when they actually start pumping it back in. During that time prices can keep dropping, which is probably what’s happening now.
Conclusion
Crypto’s drop isn’t about news; it’s about timing. Markets are stuck in that messy gap between tightening and releasing, leaving traders nervous, liquidity thin, and prices vulnerable until the Fed clearly commits to support again.
Also Read: Mastercard in Talks to Buy Zerohash
