The cryptocurrency market turned sharply lower on Wednesday after the Federal Reserve cut interest rates by a quarter point, marking its second reduction this year.

Bitcoin (BTC) fell 3.6% to $110,663, while Ethereum (ETH) dropped 5% to $3,921. Other major coins also declined, with XRP down 3% to $2.60, BNB falling 2.6% to $1,105, and Solana (SOL) down 3.1% to $193.

Despite the overall pullback, some coins saw strong gains. Official Trump (TRUMP) surged 17.9% to $8.25, Zcash (ZEC) rose 10% to $344.46, and pumpfun (PUMP) climbed 6%.

The day’s top losers included Aster (ASTER), down 8.8% to $1.05, Cronos (CRO), which fell 7% to $0.1484, and Story (IP), down 5.4% to $4.89.

The global cryptocurrency market capitalization is down 2% over the past 24 hours to $3.84 trillion, with Bitcoin dominance at 57.6% and Ethereum dominance at 12.3%.

Liquidations and Market Flows

Around $851 million in crypto positions were liquidated over the past 24 hours, according to Coinglass. Long positions accounted for about $658 million, while shorts made up $193 million.

Bitcoin led the liquidations with nearly $282 million, Ethereum followed with $256 million, and Solana contributed over $80 million.

Spot Bitcoin ETFs attracted $202 million in inflows on Tuesday, marking the fourth consecutive day of inflows totaling around $462 million. Spot Ethereum ETFs recorded nearly $246 million in inflows, marking the second consecutive day of inflows, according to SoSoValue.

Fed Reserve Decision

The Federal Reserve cut interest rates by 0.25% on Wednesday, bringing rates below 4% for the first time since late 2022. Officials said they are worried about the labor market, but don’t have full economic data because the government is shut down.

Two Fed members disagreed: Stephen Miran wanted a larger 0.5% cut, and Jeffrey Schmid wanted to keep rates unchanged at 4-4.25%. The Fed also said it will stop shrinking its $6.6 trillion balance sheet in December to avoid problems in short-term lending.

Fed Chair Jerome Powell said the job market is still at risk, and the Fed is trying to help workers without causing inflation to rise too much.

Meanwhile, President Donald Trump is preparing to visit China on Thursday to discuss a possible trade truce with President Xi Jinping. This comes after weeks of uncertainty over U.S.-China trade relations, which have been adding pressure to markets.