Ethereum Drops 15% to 2,625 Amid Fed Uncertainty

Ethereum's price plunged more than 15 percent over the past week, reaching 2,625 on Friday, its lowest level since July. The cryptocurrency, the second-largest by market capitalization, extended a broader weeks-long downturn in the crypto sector, even as major stock indexes advanced, with the S&P 500 rising 0.9 percent and the Nasdaq Composite gaining 0.8 percent.

The decline, which wiped out approximately 460 million dollars in leveraged long positions over two days, reflected investor caution toward high-risk assets amid mounting economic pressures. Spot Ethereum exchange-traded funds recorded nine consecutive days of net outflows totaling 1.33 billion dollars, as institutional investors reduced exposure to volatile markets. The U.S. Dollar Index climbed to its highest point in six months, signaling a shift toward safer holdings like cash.

Contributing factors included heightened uncertainty over the Federal Reserve's policy path. Minutes from the Fed's October 28-29 meeting revealed a divided stance on a potential December interest rate cut, with a slim majority of officials opposing it while others deemed it appropriate. Federal Reserve Bank of New York President John...