Crypto market crashes as top Fed official warns on interest rates
The crypto market crashed today, Nov. 3, as a risk-off sentiment continued and as a senior Federal Reserve official warned about interest rates in the United States.
The crypto market could crash further amid concerns about the Federal Reserve.Austan Goolsbee and Jeff Schmid have warned about inflation and interest rate cuts.Bitcoin has also formed a death cross and a head-and-shoulders pattern.
Bitcoin btc-3.01%Bitcoin$BTC price crashed to $106,000 as it neared moving into a technical bear market. Altcoins had a worse performance, led by top tokens like Aster, Virtuals, Aerodrome Finance, and Artificial Superintelligence Alliance, which tumbled by over 15%.
Austan Goolsbee warns on inflation and interest rates
Bitcoin and most altcoins have been under pressure since the Federal Reserve delivered its interest rate decision on Wednesday last week.
In that meeting, the bank decided to slash interest rates by 0.25% as it remainedconcerned about the labor market, which has deteriorated in the past few months. It also said that it would end the quantitative tightening process.
#USGovShutdown
Bitcoin and the crypto market dropped after the rate cut because Jerome Powell hinted that a December rate cut was not guaranteed. Since then, the odds of a rate cut in December have dropped to 67% from 96% last week.