Crypto market bleeds despite rate cuts, US-China trade negotiations
31.10.2025
2721
US Treasury Secretary Scott Bessent said on Thursday that the US would suspend restrictions designed to limit access to Chinese companies buying technology that the US government considers sensitive.
US Treasury Secretary Scott Bessent just dropped a bombshell: The US is suspending restrictions that blocked Chinese companies from buying sensitive US tech. In exchange, China agreed to suspend its export controls on rare earth minerals — the stuff that powers everything from your phone to military defense systems. This trade détente normally sends crypto flying, but the market's not buying it.
The Fed just slashed interest rates by 25 basis points, but Chair Jerome Powell's FOMC press conference left everyone shook. Powell said the committee has "strongly differing views" about a December rate cut and that "policy is not on a preset course." Translation: The Fed is divided AF, and that uncertainty is tanking markets.
The Fed also signaled the end of quantitative tightening (QT), which normally pumps liquidity into the system and sends crypto soaring. But here's the catch: There's usually a gap between ending QT and starting quantitative easing (QE). That means crypto could keep bleeding until the liquidity injections actually hit.
Crypto liquidations cross $1 billion following FOMC conference
Bitcoin fell 35% in 2019 after the Fed ended QT, and traders are sweating a repeat. Powell's comments about "strongly differing views" and inflation still being "somewhat elevated" despite easing from 2022 highs just added fuel to the fire.
Inflation has eased significantly from its highs in mid-2022, but remains somewhat elevated relative to our 2% target goal. There were strongly differing views about how to proceed in December. A further reduction in the policy rate at the December meeting is not a foregone conclusion — far from it. Policy is not on a preset course.
The result? Over $1.1 billion liquidated from crypto markets in 24 hours. BTC crashed below $107,000 and its 200-day exponential moving average — a critical support level that just got obliterated, according to Nansen data.
#FOMC#Position Liquidation#Macroeconomic factors#Cryptocurrency market#Federal Reserve System
Got a topic? Write to ATLA WIRE on Telegram:t.me/atla_community
