FOMC

Jerome Powell

Chair

Wednesday

Reserve

US Treasury Secretary Scott Bessent said on Thursday that the US would suspend restrictions designed to limit access to Chinese companies buying technology that the US government considers sensitive.
The eased restrictions were given in exchange for China agreeing to suspend its <a href="https://cointelegraph.com/news/china-rare-earth-control-collapsing-us-dollar" rel="noopener noreferrer nofollow">export controls on rare earth minerals</a> used in electronics and military defense applications, according to <a href="https://www.reuters.com/world/china/us-halt-entity-restrictions-one-year-after-trump-xi-meeting-bessent-says-2025-10-30/" rel="noopener noreferrer nofollow" target="_blank">Reuters</a>.
Bessent’s announcement follows several weeks of <a href="https://cointelegraph.com/news/us-china-soften-trade-rhetoric-market-rebound" rel="noopener noreferrer nofollow">softening trade tensions</a> between the two countries, which is normally a positive catalyst for crypto prices.&nbsp;
However, the recent Federal Open Market Committee (FOMC) meeting and Federal Reserve Chair Jerome Powell’s <a href="https://www.youtube.com/watch?v=gZsAKn1UtH4" rel="noopener noreferrer nofollow" target="_blank">comments</a>, including that the FOMC members have “strongly differing views” about a December interest rate cut, caused markets to stumble on Thursday.
<figure><img alt="Federal Reserve, China, Bitcoin Price, Economics, Economy, United States, Interest Rate" src="https://s3.cointelegraph.com/uploads/2025-10/019a36eb-6e86-7be2-8ec2-31ac250e5c07" title="">
 <figcaption style="text-align: center;">The crypto market is mostly in the red on Thursday. Source: <a href="https://www.tradingview.com/heatmap/crypto/#%7B%22dataSource%22%3A%22Crypto%22%2C%22blockColor%22%3A%2224h_close_change%7C5%22%2C%22blockSize%22%3A%22market_cap_calc%22%2C%22grouping%22%3A%22no_group%22%7D" rel="noopener noreferrer nofollow" target="_blank">TradingView</a>
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</figure>
The Federal Reserve also signaled the end of quantitative tightening, which restricts liquidity in the financial system, and higher liquidity is also a positive catalyst for crypto prices.
Despite this, there is typically a gap between the end of QT and the beginning of quantitative easing, when liquidity is actively pumped through the financial system, meaning crypto prices can sink further to the downside until liquidity injections arrive.
Related: <a href="https://cointelegraph.com/news/bessent-substantial-trade-framework-china" rel="noopener noreferrer nofollow">US Treasury chief Bessent says ‘substantial’ trade framework with China reached</a>
<h2 id="crypto-liquidations-cross-1-billion-following-fomc-conference">Crypto liquidations cross $1 billion following FOMC conference</h2>
The price of Bitcoin (<a href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow">BTC</a>) fell by 35% in 2019 after the Federal Reserve ended QT, <a href="https://cointelegraph.com/news/fed-end-of-qt-what-does-it-mean-for-bitcoin-price" rel="noopener noreferrer nofollow">sparking investor fears</a> of a similar scenario during the current market cycle.
Powell’s comments at Wednesday’s FOMC press conference also left investors uncertain about the direction of monetary policy, despite the <a href="https://cointelegraph.com/news/fomc-cuts-interest-rates-already-priced-in" rel="noopener noreferrer nofollow">Fed slashing interest rates</a> by 25 basis points.
<figure><img alt="Federal Reserve, China, Bitcoin Price, Economics, Economy, United States, Interest Rate" src="https://s3.cointelegraph.com/uploads/2025-10/019a36f0-067c-7327-afc3-ddde6e1eb2c7" title="">
 <figcaption style="text-align: center;">Federal Reserve Chair Jerome Powell addresses the media in Wednesday’s FOMC press conference. Source: <a href="https://www.youtube.com/watch?v=gZsAKn1UtH4" rel="noopener noreferrer nofollow" target="_blank">Federal Reserve</a>
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“Inflation has eased significantly from its highs in mid-2022, but remains somewhat elevated relative to our 2% target goal,” Powell said.
He also added that the FOMC is having trouble balancing the Fed’s dual mandate of maximum employment and stable pricing.
“There were strongly differing views about how to proceed in December. A further reduction in the policy rate at the December meeting is not a foregone conclusion — far from it. Policy is not on a preset course,” he added.
<figure><img alt="Federal Reserve, China, Bitcoin Price, Economics, Economy, United States, Interest Rate" src="https://s3.cointelegraph.com/uploads/2025-10/019a36f1-323d-7d5c-ada0-589975b88222" title="">
 <figcaption style="text-align: center;">Liquidations in the crypto derivatives market top $1 billion in 24 hours. Source: <a href="https://www.coinglass.com/LiquidationData" rel="noopener noreferrer nofollow" target="_blank">CoinGlass</a>
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</figure>
<a href="https://cointelegraph.com/news/bitcoin-risks-20-30-percent-drop-crypto-markets-liquidate-1-1b-24-hours" rel="noopener noreferrer nofollow">Over $1.1 billion was liquidated</a> from the crypto market in the following 24 hours, causing the price of BTC to fall below $107,000 and its 200-day exponential moving average (EMA), a critical and dynamic level of support, <a href="https://app.nansen.ai/token-god-mode?tokenAddress=1111111111111111111114oLvT2&amp;chain=bitcoin&amp;tab=transactions" rel="noopener noreferrer nofollow" target="_blank">according</a> to data from Nansen.
Magazine: <a href="https://cointelegraph.com/magazine/ether-solana-bitcoin-xrp-price-predictions-crypto-traders-trade-secrets-cointelegraph/" rel="noopener noreferrer nofollow">Ether could ‘rip like 2021’ as SOL traders brace for 10% drop: Trade Secrets</a>

Crypto market bleeds despite rate cuts, US-China trade negotiations

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