Bitcoin News Today: Fed Caution and Whale Sales Fuel Bitcoin's Prolonged Slump

Bitcoin's price has dipped below $108,000, extending a month-long slump driven by macroeconomic pressures, technical vulnerabilities, and shifting institutional dynamics. The cryptocurrency fell 2.5% in the past 24 hours, underperforming a broader crypto market decline of 2.88%, according to Coinpedia's live updates. Analysts point to three key factors shaping the current pullback: a hawkish Federal Reserve, profit-taking in spot Bitcoin ETFs, and whale-driven liquidity shifts.

The U.S. central bank's recent signals have reignited concerns over prolonged high interest rates, bolstering the dollar and dampening risk appetite. Federal Reserve Chair Jerome Powell's remarks, which suggested delayed rate cuts, have kept investors cautious, as Coinpedia reported. Meanwhile, spot Bitcoin ETFs have seen $388 million in net outflows—the largest since August—indicating institutional profit-taking amid a waning bull market, according to Coinpedia. Technically, Bitcoin's drop below the $109.5K level triggered automated sell orders, with critical support now hovering between $108K–$109K, Coinpedia added.

Whale activity has further intensified selling pressure. Long-term holders have deposited nearly 13,000 BTC ($1.48 billion) into major exchanges like Kraken and Binance since October, with notable transfers including 3,265 BTC ($364.5 million) moved by investor Owen Gunden, Coinpedia reported. These movements fuel speculation about large-scale sell-offs, as early adopters capitalize on elevated prices.

Stablecoin dynamics also highlight market uncertainty. Ethereum-based stablecoin volume surged to $2.82 trillion in October, a 45% monthly increase, as traders sought liquidity amid crypto's broader correction, according to TradingView. Bitcoin's dominance ratio—a metric reflecting its share of the total crypto market cap—has waned, suggesting capital is shifting to altcoins in pursuit of higher returns, according to an FXStreet forecast. However, rising stablecoin supplies, now exceeding $250 billion globally, may signal a potential bottom for Bitcoin, as liquidity builds ahead of a potential rebound, according to a Coinotag analysis.

Institutional demand, once a pillar of Bitcoin's rally, has also slowed. Michael Saylor's MicroStrategy added 397 BTC ($45.6 million) last week, but this pales compared to its September purchases of 3,526 BTC, according to Cointelegraph. Analysts warn that Bitcoin's recovery hinges on renewed large-scale buying from firms like MicroStrategy and spot ETFs, which have been primary demand drivers in 2025, Cointelegraph noted. Similarly, ARK Invest's Cathie Wood recently cut her 2030 Bitcoin price target from $1.5 million to $1.2 million, citing stablecoins' growing role as a store of value and digital money, according to U.Today.

The market's near-term trajectory remains uncertain. While stablecoin inflows and technical support levels offer cautious optimism, prolonged macroeconomic headwinds and profit-taking could prolong the downturn. As one analyst noted, "Bottoms form gradually, and liquidity buildup doesn't guarantee an immediate reversal," a point highlighted in the Coinotag analysis. For now, Bitcoin traders are bracing for volatility, with eyes on both institutional moves and evolving Fed policy.