Article Summary

The Federal Reserve's latest 0.25% interest rate cut and decision to halt quantitative tightening effective December 1st triggered massive volatility across cryptocurrency markets, resulting in $795 million in liquidations. This pivotal monetary policy shift sent shockwaves through Bitcoin, Ethereum, and major altcoins as traders scrambled to adjust positions amid changing macroeconomic conditions. The Fed's dovish stance traditionally benefits risk assets like cryptocurrency, but immediate market reaction proved turbulent as leveraged positions unwound rapidly. Bitcoin and blockchain assets experienced significant price swings as DeFi protocols and crypto derivatives faced unprecedented liquidation pressure. Major cryptocurrency exchanges reported surge in trading volume as investors recalibrated portfolios following the central bank's announcement. This monetary policy adjustment marks a crucial inflection point for cryptocurrency adoption and institutional investment flows. Lower interest rates typically drive capital toward alternative assets including digital currencies, potentially boosting long-term crypto market sentiment. However, the immediate $795 million liquidation wave demonstrates the sector's continued sensitivity to Federal Reserve decisions and macroeconomic policy changes affecting global financial markets.