Bitcoin News Today: Fed's Rate Cut Uncertainty Sparks Crypto Selloff, Bitcoin Dives 5%

Bitcoin fell below $110,000 on Wednesday as Federal Reserve Chair Jerome Powell's hawkish comments at the post-policy meeting press conference rattled markets, according to a Yahoo Finance report. The Fed trimmed its benchmark interest rate by 25 basis points to 3.75%-4.0%, but Powell's insistence that a December rate cut is "far from a foregone conclusion" sent shockwaves through risk assets. The 10-year Treasury yield surged 8 basis points to 4.06%, while the dollar strengthened and Bitcoin's price plummeted nearly 5% in 24 hours. The odds of a December rate cut now stand at 69%, down sharply from the 90% implied by markets before Powell's remarks. Analysts warn the government shutdown's data blackout has added to uncertainty, with crypto markets likely to remain volatile through year-end.

The selloff extended to exchange-traded funds (ETFs), where Bitcoin spot ETFs ended a four-day inflow streak with $470.7 million in net outflows, according to a Crypto News article. Fidelity's FBTC and ARK 21Shares' ARKB led the exodus, losing $164.36 million and $143.8 million, respectively. Ethereum ETFs also reversed course, with $81.44 million in outflows on October 29, according to a Crypto News report. The broader crypto market mirrored this trend, as ETH dropped below $4,000 amid weakening bullish momentum.

Historical patterns suggest ETF inflows often signal demand recovery, but the current environment tells a different story. Glassnode noted that recent net outflows align with market lows and declining sentiment in a Lookonchain post. Meanwhile, BlackRock's ETHA was the sole Ethereum ETF to see inflows, taking in $21.36 million. Analysts attribute the outflows to profit-taking and cautious positioning ahead of Powell's speech, as well as uncertainty over the Fed's path.

Geopolitical tensions added to market jitters. The U.S.-China trade summit between Donald Trump and Xi Jinping concluded with promises of a "trade deal pretty soon," but Asian stocks remained mixed, according to a Nasdaq article. The Shanghai Composite fell 0.73% as investors digested the lack of concrete details on AI chip discussions and fentanyl tariffs, per a Business Standard report. Japan's Nikkei 225 eked out a record close despite the Bank of Japan holding rates steady, with analysts expecting a hike in December, according to a Yahoo Finance article.

The Fed's policy ambiguity and geopolitical headwinds have created a volatile backdrop. While Bitcoin ETFs still hold 7.3% of the total supply, cumulative net inflows have dropped to $61 billion, with assets under management now at $149 billion, according to a Cointelegraph report. Michael Saylor of MicroStrategy remains bullish, forecasting a $150,000 price target by 2025, but traders are betting on caution.