Crypto Market Bloodbath: Fed Bombshell Triggers Bitcoin & Ethereum Plunge on Nov 3, 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.
