The cryptocurrency market turned red again on Tuesday, October 28, 2025, after the total market capitalization fell more than 1% to around $3.9 trillion (Rp64.6 quadrillion). Bitcoin (BTC) price led the weakness by falling to a daily low of around $112,412 (Rp1.86 billion), while Ethereum (ETH) corrected more than 3% to around $3,946 (Rp65.5 million). Although market sentiment remains weak, some analysts think the pressure is temporary ahead of the Fed’s latest interest rate decision scheduled for this week.

Fed uncertainty pressures crypto market

Much of the crypto market’s decline this time is attributed to the uncertainty of the Federal Reserve’s (Fed) interest rate policy ahead of the FOMC meeting results announcement on Wednesday US time. Investors are opting for caution amid speculation that the Fed will make a 0.25% interest rate cut, which could be a big catalyst for market movements. However, before the official decision is announced, market volatility is likely to increase sharply.

These concerns also triggered profit-taking from traders who had previously enjoyed a brief rally earlier in the month. Some analysts predict that if the rate cut does happen, then the crypto market will rally again, especially with the prospect of new Quantitative Easing (QE) that could add global liquidity. Until the decision is made, market participants are likely to opt for defensive positions.

Impact of “Sell the News” After Altcoin ETF Release

One of the other factors that suppressed crypto prices today was the “sell the news” effect following the news that an altcoin spot ETF was officially launched amid the US government shutdown. The enthusiasm for altcoin ETFs that previously drove the brief rally has now started to subside, as most market participants think the news is already “priced in”.

This condition makes some investors take the safe step of selling some of their assets to secure profits. Although the short term looks negative, analysts predict that in the medium term altcoin ETFs could strengthen cryptocurrency adoption among institutional investors. Currently, traders’ main focus has shifted to the potential for new economic stimulus from the Fed that could support the next rally.

Big Long Squeeze: Trader Loses IDR6.9 Trillion

In addition to macroeconomic factors, the crypto market has also been hit by a massive wave of liquidation against long positions. Based on data from CoinGlass, more than $567 million (IDR 9.4 trillion) worth of crypto assets were liquidated in the last 24 hours, with $409 million (IDR 6.8 trillion) of that coming from traders who were long. This surge in liquidation suggests that the market is experiencing a long squeeze, which is when long positions are forced to close as prices fall sharply.

This phenomenon accelerated the price decline of major assets such as Bitcoin and Ethereum. After the big spike at the beginning of the month, many traders utilized high leverage which ended up exacerbating the selling pressure. As a result, volatility increased and crypto prices fell faster than expected. Nonetheless, some analysts think that this decline could be a new accumulation opportunity, especially if the market stabilizes after the Fed’s decision is announced.

Conclusion

With the combination of global macroeconomic factors, the psychological effect of the altcoin ETF release, and a large wave of liquidation, the crypto market is again under short-term pressure. However, the long-term outlook is still positive, especially if the Fed actually cuts interest rates and restarts the Quantitative Easing program.