Why Is Crypto Market Down Today? Bitcoin, Ethereum & XRP Prices Fall

The crypto market moved lower on Tuesday as investors waited for the Federal Reserve. Bitcoin slipped under $80,000, and the Fear and Greed Index dropped to 48.

Worries about AI spending, high oil prices, and the fourth quarter of a midterm election year added more pressure. Traders are now watching the Fed closely.

Fed Uncertainty Keeps Risk Appetite Low

Mostly because of caution. The Fed meets on October 27-28, and nobody wants to take big risks before the result.

Bitcoin fell below $80,000 on Monday and stayed soft on Tuesday. Ethereum and XRP also stayed under pressure.

Higher interest rates usually make risky assets less attractive. Crypto is one of them.

BTC, ETH, and XRP Prices Drop Ahead of FOMC Meeting

Here is where the main coins stood at the time of writing.

XRP is the odd one out. It is slightly up even while the wider group looks heavy.

Fed Rate Hold Looks Likely, but Hike Risk Remains

The Fed target range is 3.75% to 4.00%. CME FedWatch shows a 0% chance of a cut.

About 89.5% of traders expect no change. The other 10.5% expect a hike to 4.00%-4.25%.

A month ago, a hike looked more likely than a pause. That view has changed fast.

Still, a 10.5% chance is not zero. A surprise could shake the market.

The European Central Bank and the Bank of Japan also meet this week. Both are expected to hold rates. Inflation is still sticky, and energy prices add risk, so future hikes are not off the table.

Fear and Greed Index Cools to Neutral at 48

The index reads 48, which is Neutral. Investors are not very scared, and not very greedy either.

The drop from 70 to 48 in one month shows how fast optimism has cooled.

Long Liquidations Add Pressure as Volatility Rises

CoinGlass data shows $140.52 million in liquidations across 65,628 traders. Longs lost slightly more than shorts.

Bitcoin led with $34.85 million, and 53.7% of it was longs. Ethereum came next at $23.48 million, with 55.6% longs.

Other big names were Q at $7.92 million, Solana at $4.64 million, ZEC at $4.29 million, and DOOD at $4.15 million. XRP saw $1.24 million.

The largest single order was $1.85 million, a BTC-USD short on Hyperliquid at $80,700. Binance had the biggest exchange share at 47.4%.

Bitcoin ETFs Draw Inflows While Ether and XRP Funds See Outflows

The answer is mixed, based on SoSoValue data for October 26.

Bitcoin buyers are still showing up. Ether holders are heading for the exit.

AI Spending Worries and Oil Prices Complicate Outlook

Investors are asking if big tech firms are spending too much on AI. That doubt has hit tech stocks and other risky assets, including crypto, according to Bloomberg.

Earnings from large tech companies are coming. They may show whether the spending pays off.

Oil fell on Monday after reports of more talks between Middle East countries and Iran. But prices are still close to annual highs, per Investing.com. That keeps inflation fears alive.

Fed Outcome Could Set the Tone for Bitcoin, Ethereum, and XRP Prices

Nobody knows. The Fed result will likely set the tone.

If the Fed holds and sounds calm, the crypto market may find some relief. Bitcoin would need to hold the $79,366 area first. A move back above $80,710 would show buyers are returning.

If the Fed hints at more hikes, pressure could grow. Ethereum would watch $2,293, and XRP would watch $1.27.

Volatility is likely either way. Leveraged traders have already felt it.

Disclaimer

This article is for information only and is not financial, investment, or trading advice. Crypto prices are volatile, and you can lose money. Do your own research and speak to a licensed financial advisor before making any decision.