NASDAQ:MSTR 3 November 2025 - 25 November 2025

A macroeconomic curveball from the U.S. Federal Reserve set the tone for the crypto downturn. Late last week, the Fed delivered a widely expected 0.25% interest rate cut – normally a bullish sign for risk assets – but Chair Jerome Powell’s commentary after the meeting came in far more hawkish than traders hoped. Powell cautioned that another rate cut in December is “not a foregone conclusion,” explicitly pushing back on market expectations of a quick easing cyclebinance.com. This hawkish Fed bombshell immediately soured sentiment across markets, boosting the dollar and prompting investors to de-risk. “Crypto markets retreated 6.5% last week, after Fed Chairman Powell signaled that a December interest rate cut is not a foregone conclusion, which dampened investors’ expectations for looser financial conditions in the short-term,” explained Simon Peters, crypto analyst at eTorofinancemagnates.com. In the days heading into November, traders had been optimistic that cooling inflation would encourage more Fed rate cuts. In fact, prior to Powell’s comments, futures had priced in a ~95% chance of a December rate reduction – a probability that collapsed to under 70% after his press conferencefinancemagnates.com. This abrupt shift in outlook acted as a gut-punch to risk appetite, reversing what had been a