Why is crypto market down today? Traders eye Fed as government shutdown drags on
The crypto market is down, and Bitcoin has retreated from all-time highs as macro pressure weighs on investor sentiment.
- The crypto market is down, with Bitcoin retreating from its ATH
- Macro uncertainty amid the government shutdown is causing concern
- Traders are looking at the Fed’s moves as investors lose faith in the dollar
Crypto markets dipped on Wednesday, Oct. 8, as investors grew concerned about mounting macro uncertainty. The protracted government shutdown, mixed signals from the Federal Reserve, and delayed economic data continue to weigh on sentiment.
Bitcoin (BTC) fell from its Oct. 6 all-time high of $126,198.07 and is now trading below $123,000. Pullbacks after big rallies are normal as traders take profits and overleveraged positions are cleared. Still, most major altcoins are seeing even larger losses as macroeconomic uncertainty continues to hurt sentiment.
With the U.S. federal government shutdown entering its second week, releases of key economic figures are on hold. This includes reports on inflation, employment, and consumer sentiment, data that are crucial for gauging the Fed’s rate-cut path and that, in their absence, contribute to broader uncertainty.
Why is the crypto market down today?
Crypto markets are highly sensitive to Fed policy expectations. Without fresh economic data, it is difficult for markets to assess the direction of interest rates and how much liquidity will flow toward Bitcoin and altcoins. Even so, there may be a silver lining.
Gold is performing very well. The precious metal has surged since the shutdown, surpassing $4,000 per ounce. Kevin Rusher, founder of RWA lending firm RAAC, told crypto.news that gold’s rally is a clear sign that investors are losing faith in the dollar. Citadel CEO Ken Griffin has similarly suggested that uncertainty may benefit crypto:
“Gold is at record highs and the appreciation in other dollar substitutes — to use that word loosely — in items like crypto, for example, is unbelievable. So we’re seeing substantial asset inflation away from the dollar,” Ken Griffin, Citadel.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Solana's Latest Price Drop: Analyzing Systemic Vulnerabilities in Advanced Blockchain Platforms
- Solana's 2025 price drop and declining user activity, despite strong on-chain metrics, highlight systemic risks in high-performance blockchains. - Network Value to Transaction (NVT) ratio spikes and macroeconomic headwinds exposed vulnerabilities in consensus mechanisms and validator centralization. - Security breaches, regulatory uncertainties, and cross-chain bridge risks amplified downward pressure, contrasting with whale accumulation and real-world asset adoption growth. - Case studies of Avalanche a
SOL Price Forecast for 2025: Can the Altcoin Surge Last?
- Solana (SOL) gains traction in 2025 through institutional partnerships and ETFs, boosting blockchain adoption. - Despite $101.7M ETF inflows, SOL prices fell 30% by December, highlighting macroeconomic pressures over institutional demand. - Proposed inflation reduction (SIMD-0411) and short-term rallies signal resilience, but Bitcoin/Ethereum dominance complicates altcoin sustainability. - Analysts project $400–$500 SOL by year-end, contingent on resolving rate volatility and global economic uncertaintie
The BTC Collapse: Examining the Triggers and Consequences for 2026
- Bitcoin's 2026 collapse risk stems from leverage, quantum threats, and macroeconomic fragility, mirroring 2008/1929 crises. - Leverage-driven liquidation loops and corporate Bitcoin holdings create self-fulfilling price cascades across crypto and traditional markets. - Quantum computing could break Bitcoin's cryptography, while regulatory uncertainty amplifies systemic risks in its financialized ecosystem. - Historical parallels highlight recurring patterns of speculative excess and leverage, urging robu
The Bitcoin Leverage Liquidation Dilemma: How Investor Actions and Systemic Threats Shape a Financialized Cryptocurrency Market
- October 2025's Bitcoin futures liquidation wiped $19B, exposing systemic risks from leveraged crypto exposure. - Herd mentality and ultra-leveraged products (3x/5x ETFs) amplified volatility, triggering cascading liquidations during price drops. - SEC restricted 2x leverage caps but overlooked stablecoin risks and opaque crypto-lending structures fueling contagion. - Regulators now face balancing innovation with systemic safeguards, including stress-testing crypto-linked institutions and enforcing stable
Trending news
MoreCrypto prices
More
