Why is the market down today?
1. Rising expectations of Fed rate hikes (main reason)
Cleveland Fed President Hammack said on Oct. 12 that she favored “small, timely adjustments without delay,” stoking concerns that rates could be raised again before year-end. The U.S. dollar hit an 18-month high, while Treasury yields reached a 24-year high, putting risk assets under broad pressure (Source: ChosunBiz, CoinDesk)
2. Institutional funds continue to exit ETFs
U.S. spot BTC ETFs saw net outflows of $681 million last week, their largest weekly outflow since June. ETH ETFs also saw outflows (Source: SoSoValue). Glassnode: Perpetual futures traders are opening new short positions rather than closing long ones, signaling clear caution and profit-taking among institutions.
3. A cascade of liquidations of leveraged longs amplified the decline
The crypto market saw $770 million in liquidations over 24 hours, including $685 million in long positions—leveraged bets on rising prices were wiped out en masse (Source: CoinGlass via BlockTempo). BTC has fallen more than 6% over two weeks from its Oct. 2 high of $86,790. ETH slid from its high of $2,754, and breaking below a round-number level triggered algorithmic selling.
4. Risk aversion ahead of CPI
September CPI will be released tomorrow night at 20:30 (forecast: 3.6%). Investors typically reduce their positions ahead of the data release.
Current prices: BTC around $81,500 (-2.9%), ETH around $2,425 (-4.8%); SOL and XRP are down 6–7%. The Fear and Greed Index has fallen from 69 to 57.
1. Rising expectations of Fed rate hikes (main reason)
Cleveland Fed President Hammack said on Oct. 12 that she favored “small, timely adjustments without delay,” stoking concerns that rates could be raised again before year-end. The U.S. dollar hit an 18-month high, while Treasury yields reached a 24-year high, putting risk assets under broad pressure (Source: ChosunBiz, CoinDesk)
2. Institutional funds continue to exit ETFs
U.S. spot BTC ETFs saw net outflows of $681 million last week, their largest weekly outflow since June. ETH ETFs also saw outflows (Source: SoSoValue). Glassnode: Perpetual futures traders are opening new short positions rather than closing long ones, signaling clear caution and profit-taking among institutions.
3. A cascade of liquidations of leveraged longs amplified the decline
The crypto market saw $770 million in liquidations over 24 hours, including $685 million in long positions—leveraged bets on rising prices were wiped out en masse (Source: CoinGlass via BlockTempo). BTC has fallen more than 6% over two weeks from its Oct. 2 high of $86,790. ETH slid from its high of $2,754, and breaking below a round-number level triggered algorithmic selling.
4. Risk aversion ahead of CPI
September CPI will be released tomorrow night at 20:30 (forecast: 3.6%). Investors typically reduce their positions ahead of the data release.
Current prices: BTC around $81,500 (-2.9%), ETH around $2,425 (-4.8%); SOL and XRP are down 6–7%. The Fear and Greed Index has fallen from 69 to 57.