The crypto market faced renewed pressure on Friday, Oct. 31 as major assets retreated following a wave of long liquidations that erased nearly $900 million in leveraged positions. Summary Crypto prices today are on the decline as market cap fell 1.5% to $3.7T and liquidations reached $890M. Bitcoin, Ethereum, XRP, and Solana all declined amid risk-off sentiment. Fed caution, trade tensions, and high leverage fueled the market drop. The global crypto market capitalization has slipped 1.5% to $3.7 trillion in the past 24 hours. Bitcoin fell 0.5% to $109,727, while Ethereum dropped 0.8% to $3,852. XRP and Solana declined 1.4% and 0.3%, trading at $2.48 and $185, respectively. The Crypto Fear & Greed Index slid five points to 29, now in “fear” territory, reflecting growing investor unease. According to CoinGlass data, there were $890 million in liquidations in the last 24 hours, of which $764 million came from long traders. Bitcoin alone saw $310 million in forced closures, followed by Ethereum with $195 million, Solana at $69 million, and XRP at $42 million. Open interest has declined 1.31% to $159 billion, while the average market relative strength index sits at 40, indicating neutral momentum. Fed comments weigh on crypto prices today The latest decline followed the Federal Reserve’s 25-basis-point rate cut on Oct. 29. The rate cut had been widely anticipated, resulting in a “sell-the-news” move which triggered forced liquidations across major exchanges. While lower rates often boost risk assets, it was overshadowed by Chair Jerome Powell’s hawkish undertone, suggesting it could be the final cut of 2025. At the same time, heavy U.S. Treasury issuance has reduced market liquidity, pulling funds away from assets like crypto. Traders reacted with a “sell-the-news” move, triggering forced liquidations across major exchanges. Funding rates have turned slightly negative, showing less appetite for leveraged bets. Analysts describe the correction as a “liquidity purge” rather than a full-blown bear market, similar to prior mid-cycle shakeouts. Broader market pressure continues Ongoing concerns around trade tensions between the U.S. and China also added pressure. Even as new negotiations move forward, investors remain wary of President Trump’s previous tariff threats. While some traders expect further downside, with Bitcoin potentially retesting $104,000, on-chain data shows stable accumulation by long-term holders. Analysts note that inflows to wallets continue to rise, suggesting underlying confidence. In the past, risk asset recoveries have often been preceded by late-October pullbacks. Traders are keeping an eye out for a possible rotation back into cryptocurrency once liquidity conditions stabilise, as the Fed is expected to clarify its course in the upcoming weeks and trade negotiations continue.
