Crypto Markets Tumble on Fed Inflation Signal and Trade Tensions

The crypto market dropped 1.83% today, wiping out about $70 billion in value and extending October’s 4.65% monthly loss.

The decline followed a 25-basis-point Fed rate cut to 3.75%, but Chair Jerome Powell’s warning about persistent inflation cooled hopes for further easing. His comments on “downside risks to employment” also dampened investor confidence.

Crypto Market Slides as Fed Warning and Trade Doubts Weigh on Sentiment

Meanwhile, optimism over a U.S.- China trade deal faded as doubts grew about its long-term strength, sparking profit-taking across digital assets.

Around $657 million in crypto positions were liquidated, with 77% being long bets. Bitcoin fell below the key $110,000 support, deepening the market’s retreat.

Trump and Xi Aim to Calm Trade Waters in Seoul

Today in crypto, global attention turned to South Korea, where U.S. President Donald Trump met Chinese President Xi Jinping. Their face-to-face meeting was to calm down on the current tariff wars that have been hanging on the world markets. Before the meeting, Trump was optimistic, he mentioned that the two leaders were already on the same page on major issues.

We have already come to an agreement on much, Trump said. I believe that we will have an awesome relationship in the long run. The White House on X  posted the remarks, which was an indication of positive diplomatic progress.

The recent trade tensions, such as the export ban on rare earth elements by China and the tariffs imposed by Trump have raised some anxieties of a more generalized slackening of the economy. The impact has been experienced by the crypto market, especially when the plummeting of Bitcoin by more than 121,560 to less than 103,000 on October 10. The conclusion of the meeting is assured by the Rapid Response 47 X account, but the details about the agreements made are not comprehensive.

Pro-Crypto Group Endorses Andrew Cuomo for NYC Mayor

Meanwhile, the New York City mayoral race went digital when a crypto-friendly politics group, Innovate NY, supported Andrew Cuomo. Innovate NY has termed itself pro-digital assets and has close to 100K of campaign money. This group referred to the support of blockchain, AI, and public-benefit stablecoins, and tokenization technologies by Cuomo.

Innovate NY has already spent 30,000 dollars on the materials to support Cuomo and fight against Democrat Zohran Mamdani, who is ahead of him in most polls. The mayoral race is to take place on November 4, and the early voting is already in progress.

Cuomo is an active voter courter of crypto and vowed to introduce an Innovation Council dedicated to new technologies. On the contrary, Mamdani has focused more on the cost-of-living rather than on digital resources. Republican Curtis Sliwa is an equally good contender.

Grayscale Launches Solana Staking ETF

In a notable move for the crypto market, Grayscale Investments is an investment fund that introduced a Solana staking ETF, which caught the interest of institutional investors. After Bitwise took the same path with ETFs, the firm submitted its S-1 registration, which also dropped the delaying clause.

This comes at the time when Ethereum is about to implement its Fusaka upgrade on December 3. The last testnet, Hoodi, became operational on Tuesday, marking the next one as the mainnet. Such changes include Peer Data Availability Sampling (EIP-7594), making the nodes more efficient. EIPs 7825 and 7935 are also used to increase gas limits and improve parallel execution in the update.

Fusaka addresses the issue of scalability, one of the pillars of the long-standing Ethereum trilemma of blockchain that also includes security and decentralization.