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The crypto market cap dropped by over 1% to hover around $3.9 trillion on Tuesday, October 28, during the late North American session. Bitcoin (BTC) price led the wider altcoin market in bearish sentiment, having dropped to a local low of about $112,412.
Ethereum (ETH) price slipped over 3% during the past 24 hours to trade at about $3,946 at press time. Nonetheless, the fear of further crypto capitalization has gradually declined as traders await high-impact news from the United States.
Main Reason Why Crypto is Down Today?
Midterm Uncertainty Caused by Wednesday’s Fed Rate Cut
The crypto market experienced higher volatility during the past 24 hours ahead of the upcoming FOMC data. The Fed rate jitters have sent shockwaves to the crypto market amid rising calls for an altseason 2025.
Nonetheless, crypto traders are expecting the bullish outlook to return amid anticipated Fed rate cuts and the onset of Quantitative Easing (QE). Furthermore, the ongoing capital rotation from Gold to Bitcoin will be bolstered by notable cash printing from the Federal Reserve, with experts predicting $1.5 trillion in the near term.
Sell the News Impact After Altcoins ETFs
The wider cryptocurrency market experienced a slight drop following news that spot altcoin ETFs are now live, amid the ongoing U.S. government shutdown. The altcoin ETF hype is gradually getting factored in, as traders await QE and Fed rate cuts.
Longsqueeze Impact Caused by High Liquidations
The crypto market recorded a notable decline on Tuesday, fueled by heavy liquidation of long traders. According to market data from CoinGlass, out of the $567 million liquidated from crypto traders during the past 24 hours, more than $409 million involved long traders.