Fed Cuts Rates 0.25%, Halts QT; Crypto Market Sees $795M Liquidations

The US Federal Reserve cut interest rates by 25 basis points on Oct. 29, reducing the federal funds rate to a range of 3.75%-4.00%. This decision was passed with a 10-2 vote, despite dissent from two members who favored different actions.

The Fed will stop Quantitative Tightening from Dec. 1, maintaining balance sheet levels by reinvesting in Treasury bills.
Bitcoin (BTC) dropped 2.55% to around $110,764 following the announcement, with $795.2 million in liquidations within 24 hours.
Despite short-term volatility, the long-term outlook is seen as positive due to increased liquidity and risk appetite for digital assets.
The rate cut was expected after softer inflation data increased the likelihood of this move to 99%.
The decision comes amid limited economic visibility due to the ongoing federal government shutdown.

Crypto market liquidations