The #crypto market is once again painted in red. After weeks of cautious optimism, fear has crept back in — this time fueled by hawkish remarks from the U.S. Federal Reserve and renewed trade tensions between Donald Trump and China’s Xi Jinping.
As of today, #Bitcoin has slipped 3.8% to $110,063, while Ethereum dropped 3.6% to $3,853. XRP wasn’t spared either, falling 4.1% to $2.51. The sudden pullback reflects a wave of risk-off sentiment spreading across global markets, as traders react to a mix of economic uncertainty and geopolitical unease.
Why Is the Crypto Market Crashing?
The downturn began soon after Federal Reserve Chair Jerome Powell signaled that the latest 25-basis-point rate cut might be the final one for this cycle. Powell’s statement that the Fed could “wait a cycle” before introducing more easing quickly dashed hopes for a sustained period of low interest rates.
For traders who were betting on cheaper liquidity, the message was clear — monetary relief won’t come as fast as expected. Risk assets like cryptocurrencies, which thrive on liquidity and investor optimism, were hit hardest.
The pressure intensified after the much-anticipated Trump–Xi meeting failed to deliver concrete progress on trade issues. While both sides called the talks “productive,” investors saw it as a temporary truce rather than a breakthrough, keeping markets on edge about potential tariff escalations.
As a result, traditional markets also wobbled — the Dow Jones slipped 0.2%, and the S&P 500 stayed flat, signaling broader market unease.
Institutional Investors Still Betting on Crypto
Interestingly, the dip hasn’t scared everyone away. In fact, institutional interest remains strong.
According to the latest data, Bitcoin ETFs saw $202.48 million in net inflows on October 28, driven by giants like BlackRock, Fidelity, and Ark & 21Shares. This brought total inflows to over $62 billion — a sign that large investors still believe in Bitcoin’s long-term value.
Ethereum ETFs also performed well, attracting more than $246 million in inflows. Despite the short-term panic, these numbers show that major financial players are buying the dip, viewing crypto as a strategic long-term asset class.
Robert Kiyosaki’s Dire Warning: “Massive Crash Beginning”
Adding fuel to the fear, Robert Kiyosaki, author of Rich Dad Poor Dad, issued another stark warning on social media.
“MASSIVE CRASH BEGINNING: Millions will be wiped out. Protect yourself. Silver, gold, Bitcoin, Ethereum investors will protect you,” he wrote on X (formerly Twitter).
Kiyosaki believes the global financial system is on the brink of collapse, urging people to seek refuge in hard assets like gold, silver, and crypto. He argues that traditional currencies are being devalued by government policies and inflation, making decentralized and tangible assets a safer choice.
Despite years of issuing similar warnings, Kiyosaki’s message continues to resonate in today’s uncertain economy. He recently doubled down, calling silver and Ethereum “the best value buys” due to their industrial and technological importance.
Are We Heading Toward a Major Crypto Crash?
Not everyone is optimistic. Market analyst Jonesy cautioned that rate cuts often precede major crashes, citing 2000, 2007, and 2020 — all years when markets plunged soon after easing cycles. His indicators suggest that instability is growing, and April’s lows may not be the bottom for Bitcoin.
At the moment, Bitcoin remains above $108,000, but investor sentiment has clearly shifted toward fear. With the Fed holding firm, Trump–Xi tensions rising, and volatility creeping in, traders are once again seeking shelter in gold, silver, and crypto — ironically echoing Kiyosaki’s long-standing advice.
Whether this pullback becomes a full-blown crash or just another correction depends on the weeks ahead — and on whether global policymakers can restore investor confidence.
FAQs
Why is the crypto market down today?
Crypto prices are dropping due to fears that the Federal Reserve will delay further rate cuts, combined with uncertainty from the Trump–Xi trade discussions.
How does the Fed impact Bitcoin and crypto prices?
When the Fed slows or halts rate cuts, liquidity tightens, making investors more cautious. This often leads to short-term sell-offs in risk assets like Bitcoin.
Are institutional investors still buying crypto?
Yes. Firms such as BlackRock and Fidelity continue to pour money into Bitcoin and Ethereum ETFs, showing faith in crypto’s long-term growth.
Could this decline trigger a bigger crash?
Some analysts believe so, especially if global tensions rise or if the Fed stays hawkish longer than expected. However, consistent ETF inflows suggest institutional investors remain confident in the asset class.
Disclaimer: This article is based on verified financial and market data available as of publication. Cryptocurrency investments carry risk, and readers are advised to conduct independent research or consult a financial advisor before making investment decisions.
Discover more from News Diaries
Subscribe to get the latest posts sent to your email.