Cryptocurrency markets are once again in the red today following cautious signals from the US Federal Reserve and escalating trade tensions between Donald Trump and China’s Xi Jinping. Bitcoin fell 3.8% to $110,063, Ethereum fell 3.6% to $3,853, and XRP fell 4.1% to $2.51. The decline reflects a clear risk-off sentiment as investors retreat amid heightened uncertainty surrounding global policy decisions.
Why are cryptocurrencies crashing?
Traders are panicking after Federal Reserve Chairman Jerome Powell suggested that the recent 25 basis point rate cut could be the last one in 2025. Powell warned that the Fed could “wait a cycle” before introducing more easing, dashing hopes for faster monetary easing.
The comments hurt risk assets across the board, with the Dow Jones falling 0.2% and the S&P 500 flat as markets began pricing in a prolonged period of difficult financial conditions.
Adding to the pressure, the highly publicized meeting between Trump and Xi yielded little clarity. Both sides described it as “productive,” but traders saw it as a temporary truce rather than a real breakthrough. The lack of concrete progress has heightened nerves, especially as global markets brace for potential ramifications from new trade disputes and tariff tensions.
Institutional investors are still buying
Despite the price decline, institutional demand for cryptocurrencies remains strong. On October 28, Bitcoin ETFs recorded net inflows of $202.48 million, led by BlackRock, Fidelity, and Ark & 21Shares, bringing total inflows to over $62 billion.
The Ethereum ETF also gained momentum, attracting more than $246 million in net inflows. This suggests that major players continue to see long-term value in digital assets, despite the panic among short-term traders.
- Also read:
- Is it too late to buy Bitcoin and cryptocurrencies in 2025?
- ,
Robert Kiyosaki “Invest in Bitcoin!”
Robert Kiyosaki, author of “Rich Dad, Poor Dad,” has once again sounded the alarm amid market instability.
“The Great Crash Begins: Millions of people will be wiped out. Protect yourself. Silver, gold, Bitcoin and Ethereum investors will protect you,” he warned in X.
Kiyosaki believes the global economy is on the brink of a severe financial crisis and argues that real assets such as gold, silver and cryptocurrencies are the only reliable protection against inflation and currency collapse.
He recently reinforced that stance, saying that silver and Ethereum are the best buys right now due to their industrial and technological utility. Critics point out that he has been predicting the crash for years, but his warnings resonate strongly in today’s climate of economic uncertainty.
Will there be a major crash in virtual currencies?
Trader Jonesy echoed Kiyosaki’s warning, warning that rate cuts are often preceded by major market crashes, citing 2000, 2007 and 2020, when markets fell by as much as 56%. His trading indicators are currently showing volatility, suggesting that April’s lows may just be the beginning of another decline.
For now, Bitcoin is above $108,000, but concerns are spreading rapidly. With the Fed holding companies strong and global tensions rising, investors are once again looking to gold, silver and cryptocurrencies for safety, just as Kiyosaki warned.
Never miss a beat in the crypto world!
Get the latest news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.
FAQ
Cryptocurrency prices have fallen as traders react to comments from the Federal Reserve hinting at a smaller interest rate cut in 2025 and uncertainty from trade talks between President Trump and Xi Jinping.
If the Fed delays rate cuts, liquidity will tighten and investors will become more risk-averse. This often causes Bitcoin and other cryptocurrencies to temporarily decline.
yes. Large companies such as BlackRock and Fidelity continue to buy Bitcoin and Ethereum, expressing confidence in the long-term potential of cryptocurrencies.
Steady ETF inflows suggest institutional investors’ confidence in digital assets is growing, although some traders fear further declines if global tensions rise.
Trust CoinPedia:
CoinPedia has been providing accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by an expert panel of analysts and journalists following strict editorial guidelines based on EEAT (Experience, Expertise, Authority, and Trustworthiness). All articles are fact-checked against trusted sources to ensure accuracy, transparency, and authenticity. Our review policy ensures unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely and up-to-date information on everything cryptocurrencies and blockchain, from startups to industry giants.
Investment Disclaimer:
All opinions and insights shared represent the author’s own views on current market conditions. Please do your own research before making any investment decisions. Neither the author nor the publication is responsible for your financial choices.
Sponsors and advertising:
Sponsored content and affiliate links may appear on our site. Ads are clearly marked and our editorial content is completely independent of our advertising partners.