The crypto market faced $300 million in liquidations in the past hour as Federal Reserve Chair Jerome Powell delivered remarks during the Federal Open Market Committee speech, triggering immediate volatility across digital assets.

The liquidations reflect heightened market sensitivity to central bank communications, as traders respond rapidly to policy signals from the Federal Reserve’s policy-making body.

The Fed on Wednesday decided to reduce the federal funds rate by 25 basis points to between 4% and 3.75%. The rate cut, decided by a 10-2 vote, aims to address slow job gains and a slight increase in the unemployment rate.

Lower interest rates could drive investments towards cryptocurrencies and other alternative assets. However, the extended US government shutdown could still complicate the crypto outlook by causing regulatory delays and increasing investor uncertainty.