Bitcoin Crashes Below $102K! Is Fed Uncertainty to Blame? Crypto Reels as US Markets Open!

Crypto

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Updated on 12 Nov 2025, 06:02 pm

Cryptocurrency markets faced a sharp downturn as Bitcoin plummeted by over 3% to trade below $102,000, after briefly touching $105,000 earlier on Wednesday. Ether also saw a nearly 5% drop, falling below $3,400, with other major altcoins like Solana suffering similar losses. The decline extended to crypto-related US stocks, with Circle, the issuer of the USDC stablecoin, dropping 9.5% following its third-quarter earnings report. Crypto miners, including Bitfarms, Bitdeer, Cipher Mining, Hive Digital, Hut 8, and IREN, also experienced sell-offs ranging from 5% to 10%.

This lacklustre performance during US trading hours has become a recurring theme in recent weeks. The "Coinbase Premium," a gauge of US investor demand, has remained negative since late October, marking its longest streak of negativity since March-April when Bitcoin saw a significant market correction. This shift in US sentiment appears to be closely tied to increasing uncertainty about the US Federal Reserve's monetary policy. What was previously anticipated as a straightforward path to a December rate cut has become unclear, as policymakers are reportedly divided over whether persistent inflation or a weakening labor market poses the greater risk.

This division, exacerbated by recent government data collection disruptions, has made a December rate cut a "tossup." The uncertainty has led to over $1.8 billion in outflows from US-listed spot Bitcoin ETFs since the Fed's October meeting, indicating that a lack of clear positive catalysts is keeping Bitcoin on edge.

Impact This news has a moderate impact on the Indian stock market, primarily through sentiment and potential shifts in global capital flows. Uncertainty in major global markets like the US often creates volatility. The cryptocurrency market itself is volatile and has indirect correlations with technology and finance sectors. Rating: 5/10.

Difficult Terms:

* Altcoin: Any cryptocurrency other than Bitcoin. * Stablecoin: A type of cryptocurrency designed to minimize price volatility, often pegged to a stable asset like a fiat currency (e.g., USD). * Coinbase Premium: A metric that compares the price of Bitcoin on Coinbase (popular in the US) versus Binance (popular offshore), indicating US investor demand. * Federal Reserve (Fed): The central bank of the United States, responsible for monetary policy. * Rate Cut: A reduction in the benchmark interest rate by a central bank, intended to stimulate economic activity. * Spot Bitcoin ETFs: Exchange-Traded Funds that hold actual Bitcoin rather than futures contracts.