The global crypto market continues to struggle as macroeconomic pressures and mixed policy signals from the United States weigh heavily on investor sentiment, even amid signs of easing trade tensions between Washington and Beijing.
Rate Cuts Fail to Lift Crypto Prices
Despite the Federal Reserve’s 25 basis point rate cut, digital asset prices remain under pressure. The latest Federal Open Market Committee (FOMC) meeting offered no clear signal about future monetary policy, with Chair Jerome Powell warning that officials hold “strongly differing views” about another potential cut in December.
Powell emphasized that while inflation has fallen from mid-2022 highs, it still remains “somewhat elevated relative to the 2% target.” The uncertainty surrounding further easing has left traders cautious.
Market analysts note that this ambiguity, combined with a pause in quantitative tightening (QT), has sparked fear that liquidity might not return to markets immediately. “The gap between the end of QT and the start of quantitative easing typically leaves risk assets vulnerable — and crypto is no exception,” said one market strategist.
US-China Trade Developments Offer Limited Relief
Meanwhile, US Treasury Secretary Scott Bessent announced a temporary suspension of restrictions on Chinese firms accessing sensitive American technologies. In return, China agreed to lift export controls on rare earth minerals, a move expected to ease supply chain concerns in high-tech industries.
Historically, improved US-China relations have supported crypto market optimism, but this week’s developments failed to spark a rebound. “Geopolitical progress is being overshadowed by monetary policy uncertainty,” said a senior economist at a digital asset research firm.
Crypto Liquidations Exceed $1 Billion
Following the FOMC meeting, over $1.1 billion in leveraged crypto positions were liquidated within 24 hours, according to CoinGlass data. Bitcoin briefly fell below $107,000, breaking beneath its 200-day exponential moving average (EMA) — a level widely watched by technical traders.
“Investors are reacting more to liquidity signals than to rate moves,” noted another analyst. “Until the market sees clear signs of new liquidity injections, volatility and downside pressure will likely persist.”
The broader takeaway is clear: despite lower interest rates and progress in global trade negotiations, the crypto market remains driven by liquidity cycles — and until confidence returns, digital assets may continue to bleed.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.