Article Summary

**Cryptocurrency Markets Plunge Following Powell's December Rate Cut Uncertainty** The cryptocurrency market experienced a sharp decline Tuesday as Federal Reserve Chairman Jerome Powell cast doubt on a December interest rate cut, stating it's "far from certain." Powell's hawkish stance immediately triggered widespread selling across digital assets, with Bitcoin and major altcoins retreating from recent gains. The Fed Chair's comments significantly dampened investor sentiment, as crypto traders had been positioning for continued monetary easing to support economic growth. Higher interest rates typically create headwinds for risk assets like cryptocurrencies, as investors shift toward yield-bearing traditional investments. This monetary policy uncertainty comes at a critical time for the crypto market, with Bitcoin having shown recent strength and DeFi protocols experiencing renewed activity. Blockchain-based assets often correlate with broader market sentiment regarding liquidity conditions, making Federal Reserve policy decisions crucial for cryptocurrency valuations. Market participants are now reassessing their positions ahead of the Fed's December meeting, with many expecting continued volatility in Bitcoin, Ethereum, and other digital assets. The cryptocurrency sector remains highly sensitive to macroeconomic factors, particularly central bank policy decisions that influence global liquidity and risk appetite among institutional investors.