The cryptocurrency market experienced a notable downturn today as the US Federal Reserve”s hawkish monetary policy stance prompted significant sell-offs across major digital assets. Following the release of the FOMC minutes on Wednesday, investors reacted cautiously, leading to declines in Bitcoin (BTC), Ethereum (ETH), and XRP.
The pressure on the crypto market has intensified, particularly for leading cryptocurrencies like BTC, ETH, and XRP, which are currently trending downward. This negative sentiment follows a market crash in October 2025, and now, macroeconomic concerns are further exacerbating the situation. The FOMC, during its meeting on January 27-28, voted 10-2 to maintain the federal funds rate at a range of 3.5% to 3.75%, a decision influenced by three previous rate cuts of 75 basis points between September and December 2025.
As detailed in the FOMC minutes, the Federal Reserve indicated its readiness to implement further interest rate hikes if inflation does not progress toward its 2% target. The minutes stated, “Most participants cautioned that progress toward the Committee”s 2% objective might be slower and more uneven than generally expected.” This statement has created uncertainty surrounding future Fed decisions, with the likelihood of rates remaining unchanged now estimated at 93% for the upcoming meeting.
In reaction to this news, the overall crypto market cap fell by approximately 1.52%, settling at $2.31 trillion. This downturn has led to a wave of liquidations across various tokens, with open interest dropping by 0.71%. Within the first 24 hours following the announcement, traders suffered losses exceeding $224 million in futures positions. Those holding long positions faced the brunt of the losses, totaling around $164 million.
Uncertainty about upcoming Federal Reserve rate cuts has prompted traders to maintain their sell positions on major cryptocurrencies. As a result, BTC is currently priced at $67,047, reflecting a 1.66% decrease over the day. Similarly, ETH and XRP have also experienced declines of 2.06% and 4.02%, respectively, with ETH trading at $1,975 and XRP at $1.42.
Adding to the macroeconomic uncertainty, rising geopolitical tensions, particularly regarding speculations about a potential US-Iran conflict, are influencing market behavior as investors increasingly seek safer asset classes.
