Fed Rate Hike Concerns Triggered a $320 billion equity market selloff On October 13th, with the S&P 500 The 0.74% decline in the Dow Dropping 0.52% and the Nasdaq declining 0.91%. Bitcoin ETF’s momentum is slowed down as investors are reassessing their crypto-positions in light of tighter monetary policy, and growing institutional caution.
Bitcoin ETF: After the Fed’s rate hike, markets are slipping as momentum for Bitcoin drops.
It is important to note that the word “you” means “you”. Fed rate hike environment Crypto volatility is on the rise and institutional demand has been dampened. At 4 pm, the three main indices had fallen. ET on October 13, with widespread selling pressure affecting both traditional equities and cryptocurrency-linked products at the time of writing.
The recent selloffs in the equity markets indicate that investors are becoming more concerned about the effects of high interest rates on risk assets. Analysts attribute recent market declines to the Fed’s hawkish policy.
Nic PuckrinCrypto analyst and cofounder of The Coin Bureau said:
“The arrival of spot crypto ETFs and institutional interest has lulled investors into a false sense of security, but it remains the only market that trades after hours.”
The Crypto Market is Hit by the Broad Market Declination
Dow Jones Futures dropped to 46,058.00 at the start of Monday, a drop of 240 points, or 0.52%. The S&P 500 futures also dropped 49.75 points to 6,645.00, while Nasdaq 100 futures declined 228 points to 24,694.25.
The Fed’s ongoing rate hike cycle has pushed speculative assets to the limit. This selloff of broad equity markets is accompanied by a reduction in Bitcoin ETF investments. Crypto products, which were popular earlier this year, are facing a decline in demand. Nick ForsterDerive.xyz founder, Mr., said:
“The crash was triggered by renewed fears of a U.S.-China trade war, after Donald Trump threatened an additional 100% tariff on Chinese imports.”
You may also like: Bitcoin and Altcoins Swing as Fed Rate Cut Fuels Crypto Rally
Crypto volatility increases amid rate concerns
In the present tightening of policy, institutional demand has decreased. This is causing a rise in volatility of cryptocurrency. Bitcoin ETFs that saw high inflows during the early years of 2025, are now struggling because increased Treasury yields make traditional fixed income assets attractive and offer safer returns.
Simon DangoorGoldman Sachs Asset Management’s head of Fixed Income Macro Strategies commented on the following:
“A majority of the FOMC is now targeting two further cuts this year, indicating that the doves on the committee are now in the driver’s seat.”
Cryptocurrencies have moved in sync with equity markets, rather than acting independently as independent store of value.
You may also like: Three Fed Rate Cuts in 2025, Starting Sept. 17, Reuters Survey Reveals
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: watcher.guru
