Cryptocurrency markets came under renewed pressure this week after the Federal Reserve published minutes from its September policy meeting, signalling that most officials still expect one more interest rate rise before the end of the year. Bitcoin fell to an intraday low of $83,065 before steadying near $83,311, leaving the world’s largest digital asset down around 2.5 per cent over the past 24 hours. Ethereum and a string of major altcoins fared worse, underlining how quickly digital assets can retreat when central bank policy turns hawkish.
Fed minutes point to one more hike this year
According to the minutes, most policymakers at the September meeting continued to judge that a further increase in the federal funds rate would be appropriate before year end. Officials remained concerned that inflation could stay above target, with several pointing to rising energy and data centre costs linked to the artificial intelligence boom as fresh sources of upward pressure on prices.
The hawkish tone unsettled markets that had begun to price in an end to the tightening cycle. Traders reassessed the odds of a December move, US Treasury yields moved higher, and appetite for risk assets faded. Crypto, which has traded in close step with equities and other risk-sensitive assets for much of the year, was among the first segments to feel the impact.
Bitcoin slips as $82,000 support comes into view
Bitcoin bore the brunt of the early selling, dropping to $83,065 before finding buyers. At the time of writing it was changing hands near $83,311, down roughly 2.5 per cent on the day. Trading activity jumped 34.7 per cent to $106.22 billion, suggesting volatility is drawing traders back into the market rather than scaring them away.
Derivatives data told a grimmer story for leveraged positions. Around $46 million of crypto positions were liquidated in just four hours as the slide gathered pace, with long bets accounting for the bulk of the losses. Analysts say the shake-out could clear the way for a rebound, but only if Bitcoin holds above the $82,000 support level. A decisive break below could open the door to the psychologically important $80,000 mark.
Ethereum and major altcoins suffer steeper losses
Ethereum fell further than Bitcoin, sliding to $2,542 before recovering slightly to $2,564, a drop of about 4.7 per cent over 24 hours. The second-largest cryptocurrency has struggled to reclaim the $2,600 level, which traders now see as the key hurdle for any sustained recovery.
Elsewhere the sell-off was broad. BNB slipped 1.4 per cent, XRP dropped 5.4 per cent, Solana lost 3.9 per cent and Dogecoin tumbled 6.6 per cent. The combined value of the crypto market fell 3.0 per cent to $2.92 trillion, wiping out much of the ground gained earlier in the week.
What UK investors should watch next
For UK investors, the message from the Fed minutes is a reminder that crypto remains highly sensitive to shifts in US monetary policy. With a December rate rise back on the table, digital assets could face further headwinds through the final quarter of the year.
The levels to watch are clear: Bitcoin must hold $82,000 support to avoid a test of the $80,000 psychological floor, while Ethereum needs to retake $2,600 to regain momentum. Traders should also keep a close eye on Treasury yields and incoming US inflation data, both of which could swing sentiment sharply in either direction. As ever, careful position sizing and risk management matter more than market timing when volatility runs this high.
