The cryptocurrency market experienced a significant downturn as the Federal Reserve concluded its Quantitative Tightening (QT) program on December 1, ceasing Treasury runoffs. This development led to a 5.21% drop in the total crypto market capitalization, now standing at $2.92 trillion. The CMC20 index also fell by 5.61% to $181.25, reflecting broader market declines.
Market sentiment has deteriorated, with the Fear & Greed Index slipping to 20, indicating a state of fear among investors. Goldman Sachs predicts a December rate cut is imminent, driven by a rise in WARN layoff notices. CME futures data shows an 87% probability of a rate cut this month, up from 71% a week ago.
Crypto Market Cap Falls Below $3 Trillion as Fed Ends QT
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