Bitcoin News Today: Fed Hesitation and Uncertain Trade Deals Fuel Crypto Volatility as Bitcoin Hovers Near $110K

Bitcoin tests $110,000 as traders "sell the news" on Fed rate cut and U.S.-China trade developments, with crypto markets grappling with heightened volatility amid shifting macroeconomic and geopolitical dynamics. The Federal Reserve's 25-basis-point rate cut, announced on October 29, triggered a wave of outflows from Bitcoin and Ethereum ETFs, with $470.71 million and $81.44 million in withdrawals, respectively, according to a Coinpedia report. The move, coupled with Fed Chair Jerome Powell's suggestion that further cuts in 2025 are uncertain, sent Bitcoin tumbling 3.71% to $108,325.44 and Ethereum down 2.68% to $3,904.19.

The ETF outflows underscored a broader sell-off as traders adopted a cautious stance ahead of Powell's post-meeting press conference. Fidelity's FBTC led Bitcoin ETF outflows with $164.36 million, while Ethereum ETFs saw Fidelity's FETH withdraw $69.49 million, the Coinpedia report said. Despite the rate cut, which typically supports risk assets, Powell's "wait-and-see" approach to future monetary policy dampened optimism, according to an FXStreet report. "The shutdown's data blackout means subsequent Fed moves are unpredictable, and that's what markets hate most," noted RedStone co-founder Marcin Kazmierczak in comments to FXStreet.

Geopolitical tensions further compounded the sell-off. U.S. President Donald Trump's meeting with Chinese President Xi Jinping in South Korea sparked mixed reactions, with Trump claiming a "pretty close" trade deal but leaving key details unclear, according to an Investing.com report. While reduced tariffs on fentanyl and agricultural goods eased some concerns, markets awaited concrete terms to assess the impact on global risk sentiment. The U.S.-China trade relationship, though not directly tied to crypto, influences broader market sentiment, as seen in Bitcoin's early October flash crash amid renewed tensions.

Meanwhile, altcoin markets remained subdued as Bitcoin dominance surged. The Altcoin Season Index plummeted to 27, indicating fewer than 75% of altcoins outperformed Bitcoin in the past 90 days. Ethereum, however, showed resilience, with ETF inflows reaching $26.9 billion year-to-date, while BlackRock's IBIT dominated Bitcoin ETF flows with $28.1 billion in inflows, analysts noted in a Coinotag analysis. Analysts highlighted Ethereum's steady traction amid Bitcoin's concentrated ETF dynamics, though altcoins like XRP, LINK, and DOGE were eyed for potential rallies as market focus shifted in a CryptoNewsLand piece.

Mastercard's rumored $1.5–$2 billion acquisition of crypto infrastructure firm Zerohash signaled growing institutional interest in blockchain technology, a development covered by Investing.com. Yet, the Fed's hawkish caution and geopolitical uncertainties overshadowed bullish catalysts, with traders opting for defensive positions. Deribit noted a decline in protective put bias for Bitcoin options, reflecting cautious optimism about a potential U.S.-China trade resolution, Deribit told reporters in a Yahoo Finance report.

As November approaches, markets remain anchored to two key factors: the Fed's policy path and the trajectory of U.S.-China trade relations. A definitive trade deal could reignite risk appetite, while further Fed hesitancy risks prolonging crypto's volatility. For now, Bitcoin hovers near $110,000, with traders navigating a landscape where macroeconomic signals and geopolitical narratives collide, the Coinpedia report added.