Key Insights
- The latest crypto market crash has sparked concerns, especially after the 25 bps Fed rate cut.
- BTC, ETH, XRP, SOL, and others, have recorded a massive slump today.
- The US Federal Reserve hinted towards only one rate cut in 2026.
The recent crypto market crash hints at a waning risk-bet appetite of the traders, despite the latest 25 bps Fed rate cut at the latest FOMC.
Almost all the top players in the space, including Bitcoin, Ethereum, Solana, XRP, and others, have recorded a robust decline today.
This has wiped off much of its gains from the asset’s prices, with investors evaluating the potential reason behind the dip after the recent recovery.
Besides, as per the latest crypto news, the sentiment has remained in the “fear” zone, suggesting a cautious stance of traders.
Meanwhile, many analysts said that the Fed rate cut hope was already priced in, which further explains the recent selling pressure in the market.
On the other hand, this week’s recovery in Bitcoin price, as well as the top altcoins, might have allowed traders to exit the market with profits.
So, here we explore the potential reason behind the recent crypto market crash.
Also, we would take a quick tour of the recent performances of the asset and see what may lie ahead for the crypto assets in the near future.
Top Reasons Behind Today’s Crypto Market Crash
The recent crypto market crash has sparked discussions among traders, with many wondering about the potential reason behind the recent selloff.
In addition, the dip comes despite the 25 bps Fed rate cut, which usually boosts the appeal of risk assets like cryptocurrencies.
However, as per crypto news comments, the market has already priced in the Fed rate cut bets.
Besides, the market appears to be feeling the heat as the Federal Reserve adopts a hawkish stance, signaling a pause in interest rate cuts despite Wednesday’s reduction.
The Fed’s divided vote and cautious projections have spooked market participants, with policymakers expecting just one 25-bps rate cut in 2026.
The Fed’s latest projections paint a picture of a slowly cooling economy, with inflation expected to ease to 2.4% by the end of next year.
On the other hand, the economic growth is forecasted to accelerate to 2.3%.
Having said that, it seems this shift in tone has led to increased market volatility, with investors rotating towards safer assets.
How’s BTC, ETH, & Others Are Faring?
The global crypto market cap lost nearly 3% to $3.07 trillion at the time of writing, with the fear and greed index recorded at 29, indicating a “Fear” dominance.
BTC price has once again been hovering near the $90,000 mark, with a drop of around 2.5% in the last 24 hours.
Among top altcoins, Ethereum price lost more than 4%, while XRP and Solana prices lost 3% and 5%, respectively.
In the meme coin space, Dogecoin price lost nearly 6% and SHIB price recorded a slump of around 4% from yesterday.
Meanwhile, it appears that the recent recovery in BTC price to $94,000 and ETH price to $3,400 has also caused a profit-booking scenario in the market.
In other words, the recent recovery might have helped traders to exit the market for profits. Besides, the stock market ended in positive territory yesterday.
It suggests that the investors are shifting focus from digital assets amid the ongoing volatile scenario in the market.
According to the crypto news, the total liquidations in the digital assets space were around $500 million, CoinGlass data showed.
So, investors are advised to exercise due diligence before putting their bets amid the topsy-turvy scenario in the market.