Fed interest hiking problems triggered a $ 320 billion stock market sales on October 13, with S&P 500 falls 0.74%, Dow Loses 0.52%and also Nasdaq decreased 0.91%. Bitcoin ETF Momentum has cooled down significantly right now as investors reconsider crypto positions in the midst of tightening monetary policy and rising institutional caution.
Fed Rate Hike: Markets slip after Fed Rate Hike when Bitcoin ETF Momentum Brakes
The Fed Rate Hike Environment has actually intensified crypt vollatility and muted institutional demand for digital assets. All three main indexes traded lower from 16.00 on October 13, with widespread sales pressure that affected both traditional shares and Cryptocurrency-connected products at the time of writing.
Nic puckrinCrypto analysts and co -founders of The Coin Bureau, this had to say:
“The arrival of Spot Crypto ETFs and institutional interest has lost investors to a false sense of security, but it is still the only market that shops after hours.”
Broad market decay hits crypto assets
Dow Jones Futures fell to 46,058.00, down 240 points or 0.52% at the beginning of Monday. S&P 500 Futures also fell 49.75 points to 6,645.00, while Nasdaq 100 -futures decreased 228 points to 24,694.25.
This broad-based capital market sales have been accompanied by reduced Bitcoin ETF inflows as the Fed Rate Raise cycle continues to press speculative investments. Even crypto products that saw strong demand earlier in the year are now facing headwinds. Nick ForsterFounder on Onchain Options Platform Derive.xyz, pronounced:
“The crash triggered by renewed fear of a trade war in USA-China, after Donald Trump threatened another 100% customs on Chinese import.”
Crypto volatility increases in the midst of speed problems
Cryptocurrency volatility has increased as institutional demand is down in the current screens for tightening monetary policy. Bitcoin ETF products that experienced high inflows during the previous years 2025 are struggling as increased government debt gears make traditional interest rates more appealing and safer returns.
Simon DangoorHead of macro strategies for interest on Goldman Sachs Asset Management, commented:
“A majority of FOMC is now aimed at two more cuts this year, which indicates that the pigeons in the committee are now in the driver’s seat.”
The relationship between the Fed Rate Raising curve and the price of digital assets has been clearer, where Cryptocurrencies have moved in line with the stock markets instead of acting as their own independent value stores.
Also read: Three cuts by Fed Rate 2025, from September 17, reveals Reuters Survey
