Is It All Over For the Bull Run? Rates Cuts Sink Crypto Markets – Here’s Why Crypto is Down

Core Insights - The crypto market experienced a significant downturn following the Federal Reserve's rate cut, with Bitcoin and Ether prices declining sharply after the announcement [1][3][4] Group 1: Market Reaction to Federal Reserve's Actions - The Federal Reserve cut rates by 25 basis points, lowering the target range to 3.75%-4.00%, but the cautious tone from Chair Jerome Powell dampened expectations for further cuts [4][6] - Following the Fed's announcement, Bitcoin's price fell towards the $107,000–$109,000 range, while Ether eased to approximately $3,700–$3,900 [1][2] Group 2: Impact on Crypto Market Value - The crypto market lost over $80 billion in total value, with altcoins like XRP and SOL experiencing the most significant declines [5] - Heavy liquidations were observed in both spot and derivatives markets, particularly around the $109,000 area, indicating a rapid unwinding of positions by investors [5] Group 3: Future Outlook and Price Predictions - Analysts noted that Bitcoin's price is currently trading near $108,000 after a pullback, with key resistance identified in the $111,900-$112,000 range, which is crucial for any potential new all-time highs [6][7]