Extreme Fear Rises, Hopes for Rate Cut Fall: How Will the Crypto Market Respond?

Source: TokocryptoBlog Original Title: Extreme Fear Rises, Rate Cut Hopes Plunge: How Is the Crypto Market Responding? Original Link: The market was shaken once again after the latest Federal Reserve minutes confirmed that the Quantitative Tightening (QT) program will be stopped starting December 1. However, instead of bringing fresh hope, the chances of a rate cut have sharply declined. Market expectations for a rate cut in December are now only 32.8%, whereas at the beginning of November, they were still at an optimistic 67%.

This decline in expectations has worsened investor sentiment, especially in the crypto market, which is currently in a state of extreme fear. The Crypto Fear and Greed Index remains at 15, one of the lowest points in recent months, after previously being at 16 yesterday, 25 last week, and 30 last month.

Fed Views Split, Market Becomes a Victim of Uncertainty

The Fed meeting minutes revealed that officials are not yet fully aligned on the direction of the next interest rate policy.

• Some members believe a rate cut is needed soon as the labor market is starting to weaken.

• Others prefer to wait for more evidence from economic data before making any adjustments.

This divergence in views is creating policy uncertainty that is directly pressuring global market liquidity.

Bitcoin ETFs Experience Massive Outflows, Selling Pressure Increases

The most notable impact is seen in the outflows from Bitcoin ETFs. In the last two days, total outflows have reached -$627.28 million. This significant figure indicates that institutional investors are still choosing to reduce their exposure amid the uncertain market conditions.

In the derivatives market, the pressure is even more intense. Total liquidations in the past 24 hours have reached $650.93 million, with the majority—around $491.87 million—coming from long positions. This indicates that many traders caught up in bullish euphoria were suddenly forced out of the market due to abrupt selling pressure.

Bitcoin Corrects, Market Cap Weakens

Bitcoin (BTC) has not escaped the negative sentiment either. In the past 24 hours, BTC has dropped -0.68% and is trading around $91,970 or IDR 1,534,924,816. BTC’s market dominance is now at 59.35%.

Overall, the crypto market capitalization has corrected by -1.30% to $3.13 trillion, indicating that investors are tending to hold back and avoid risk.