The crypto market is entering one of its most decisive sessions of the quarter as the Federal Reserve prepares to announce its long-awaited rate cut decision later today.
Traders are almost unanimously expecting a 25-basis-point reduction, but attention is shifting to Jerome Powell’s press conference, where every word will be dissected for signs of how aggressively the Fed plans to ease into year-end.
Liquidations Rise as Traders Hedge Ahead of the Fed
Volatility has already begun to surface across digital assets. In the last 24 hours, more than $513 million worth of leveraged positions have been liquidated, with $359 million in longs wiped out as traders misjudged market direction ahead of the announcement. The correction follows a week of intense buildup in derivatives markets and rising open interest across major exchanges.
The global crypto market cap stands at $3.8 trillion, down 1.56% in the past day, reflecting a wave of risk-off sentiment before the Fed’s move. Bitcoin is hovering around $112,954, down 1.3% in 24 hours but still up 4.7% for the week, while Ethereum trades at $4,002, maintaining a similar weekly gain. Despite the mild retracement, both remain above key moving averages, suggesting traders are awaiting confirmation rather than exiting risk entirely.
Wall Street Rallies Ahead of the Decision
Across traditional markets, optimism continues to build. The S&P 500 climbed 0.2% on Tuesday, setting another record close above 6,900, while the Nasdaq Composite jumped 0.8%, buoyed by tech optimism ahead of major earnings. The Dow Jones Industrial Average rose 162 points, underscoring broad investor confidence in a soft-landing scenario.
Cooling inflation and easing global trade tensions have fueled hopes that the Fed will finally confirm a policy pivot after more than a year of restrictive tightening. However, if Powell signals caution or hints at a slower easing path, analysts warn that risk assets could face a sharp, temporary correction.
Crypto Eyes Big Tech Earnings for Correlation Clues
The second half of the week will also test how digital assets respond to corporate catalysts. Microsoft, Alphabet, and Meta Platforms report earnings after today’s closing bell, with Apple and Amazon following tomorrow. Analysts expect all five to post robust AI and cloud-driven revenues, but warn that lofty expectations leave little room for disappointment.
For crypto, this matters more than ever. The performance of these companies — collectively representing nearly one-third of the S&P 500 — could shape short-term correlations between equities and digital assets. Strong results may reinforce the bullish case for Bitcoin and Ethereum, while any sign of slowing growth could pressure the broader market.
Today’s combination of Fed policy, tech earnings, and macro uncertainty places crypto at the center of global risk sentiment. Whether Bitcoin reclaims momentum or faces another wave of liquidations will depend heavily on Powell’s tone and how markets interpret his outlook for December.
Stay tuned for live updates throughout the day as we track the Fed decision, Powell’s remarks, and post-market earnings — and how each headline ripples through the crypto market.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.