Crypto market bleeds despite rate cuts, US-China trade negotiations
The crypto market declined due to macroeconomic uncertainty from the FOMC meeting, overriding positive trade news and interest rate cuts.Summary
The cryptocurrency market experienced a significant downturn despite positive developments like US interest rate cuts and eased US-China trade restrictions. US Treasury Secretary Scott Bessent announced the suspension of technology access limits for Chinese companies in exchange for China halting rare earth mineral export controls, which typically boosts crypto prices. However, the market stumbled following the Federal Open Market Committee (FOMC) meeting where Chair Jerome Powell indicated "strongly differing views" among members regarding a December rate cut, creating monetary policy uncertainty. Furthermore, while the Fed signaled the end of quantitative tightening (QT), which restricts liquidity, there is a typical lag before quantitative easing (QE) begins, potentially leading to further downside for crypto prices until active liquidity injections start. This uncertainty caused over $1.1 billion in crypto liquidations within 24 hours, pushing Bitcoin's price below its critical 200-day EMA.
(Source：Cointelegraph)