Federal Reserve Rate Cuts and Progress in U.S.–China Relations Lead to Bitcoin and Altcoins Decline: Weekly Crypto Overview
Despite favorable macroeconomic news including rate cuts from the Federal Reserve and advancements in U.S.–China trade negotiations, Bitcoin and altcoins suffered significant losses this week.
As October comes to a close, despite many optimistic forecasts and the Federal Reserve’s recent interest rate reductions, the cryptocurrency market faced a downturn.
Recently, Bitcoin (BTC) experienced a recovery from a dip to $106,000, approaching $110,000 again. However, it struggled to maintain significant momentum until U.S. Secretary Bessent hinted at a potential trade agreement with China, driving Bitcoin past $113,000.
Despite initial gains, Bitcoin’s price faced immediate resistance, dropping below $113,000 shortly thereafter. Wednesday’s focus shifted to the Federal Reserve, which cut key interest rates by 25 basis points as anticipated. This decision did not positively impact Bitcoin; instead, it fell to under $108,000 within 12 hours.
On Thursday, optimistic news surfaced as Trump announced a reduction in tariffs on China to 47% and indicated a more promising trade deal. Bitcoin rallied and momentarily exceeded $111,500, but this upward trend was fleeting, with prices dropping below $106,500 shortly after.
Over the week, Bitcoin recorded a 0.6% decline, while many altcoins like ADA, DOGE, and AVAX saw more significant losses. In contrast, certain tokens such as HYPE and BCH surged by 11%, and others like ZEC experienced a substantial increase of 44%.
Market Data
Market Cap: $3.770T | 24H Volume: $169B | BTC Dominance: 58.1%
Weekly Market Overview: Source: QuantifyCrypto
This Week’s Insights
- BTC: $110,270 (-0.6%) | ETH: $3,860 (-2%) | XRP: $2.51 (0.71%)
- Why Ending QT and Rate Cuts Did Not Rescue Bitcoin: Data indicates weaker institutional demand following Powell’s economic warnings, with speculations on a buy-the-rumor, sell-the-news event.
- New ETFs for Solana, Litecoin, and HBAR: Recent clarity from the SEC allows for new ETF launches, tracking major altcoins.
- CRO Surge Following Trump Media Move: An announcement led to a 10% price surge for CRO.
- Analyst Insights on BTC Fundamentals: Despite recent price dips, the intrinsic value of Bitcoin remains strong according to analysts.
- SBF’s Controversial Claims: From prison, SBF made noteworthy remarks regarding FTX’s solvency, which stirred significant debate in the crypto community.
- Saylor’s Accumulation Continues: Strategy’s identification reveals a consistent purchase pattern, securing 390 BTC.
Click here for the complete price analysis of key cryptocurrencies including Ethereum, Ripple, and Cardano.
