Powell Silence and Hack Fears Explain Why is Crypto Market Down Today

Why is Crypto Market Down Today? That’s the question on every investor’s mind as the global cryptocurrency market cap slid to $4.24 trillion, marking a 0.7% drop in 24 hours. Total daily trading volume surged to $195 billion, but not for bullish reasons — panic selling took over. Bitcoin, Ethereum, BNB, Solana, and altcoins all entered the red zone, signaling a coordinated reaction to unsettling macro and security shocks.

Powell Speech Offers No Rate Clues — Markets Lose Anchor

Traders were glued to Federal Reserve Chair Jerome Powell’s latest speech , expecting clarity on upcoming rate cuts. Instead, Powell delivered radio silence on interest rates, inflation, or economic direction. This unexpected lack of guidance left it adrift.

According to CME FedWatch , there’s still a 94.6% probability of a rate cut this month. However, Powell’s hesitation unnerved traders who had priced in certainty. Stocks dipped, bond yields softened, and crypto — sensitive to liquidity and risk sentiment — tumbled. Diverging views among Fed officials deepened confusion, prompting many to ask again: Why is Crypto Market Down Today?

CZ Hack Alert Adds Geopolitical Fear to the Mix

If monetary policy silence wasn’t enough, the crypto sector was jolted by a major security warning . Binance co-founder Changpeng Zhao (CZ) revealed that Google had alerted him to state-sponsored hacking attempts , likely linked to North Korea’s Lazarus Group .

The timing of this revelation, following BNB Chain exploits, PancakeSwap’s account breach, and recent phishing scams , amplified panic. Traders feared a coordinated cyber offensive on key entities, triggering a wave of sell-offs and wiping billions in value. This growing geopolitical cybersecurity threat reinforced negative sentiment, further answering Why is Crypto Market Down Today?

Liquidation Heatmap Highlights Panic Selling

The fallout was brutal. In just 24 hours , 138,268 traders were liquidated , totaling $427.29 million in losses. The largest single liquidation happened on Hyperliquid — a BTC-USD order worth $11.61 million . Such cascading liquidations often exacerbate volatility, driving prices lower in a feedback loop.

Source: CoinGlass

Bitcoin dropped 0.54% to $121,593.09 , with a market cap of $2.42 trillion and $74.12 billion in daily trading volume. Ethereum slipped to $4,345 , as both majors dragged the broader market down with them.

What Next? Eyes on FOMC and Government Reopening

The Fear and Greed Index has cooled to 64 (Greed) from 70 yesterday , reflecting cautious sentiment. All eyes now turn to the FOMC meeting on October 29 and the reopening of the US government , events that could reshape expectations for the rest of Q4.

Source: Alternative.me

Investors hope these developments bring clear policy direction and renewed confidence. If rate cuts are confirmed and macro stability returns, a relief rally could follow , but for now, uncertainty reigns.

Conclusion

The answer to Why is Crypto Market Down Today? lies in a perfect storm of Powell’s silence, geopolitical hack threats, and cascading liquidations. These shocks rattled investor confidence and triggered a broad sell-off. As the next FOMC meeting approaches, traders are watching closely — hoping for clarity to lift the markets from the red.

Disclaimer: This is for educational purposes only. Always do your own research before any crypto investment.