Bitcoin News Today: Bitcoin's Bull-Bear Struggle: ETF Inflows Clash with LTH Sell-Off After Fed Rate Cut

The Federal Reserve's widely anticipated 25-basis-point rate cut, announced on October 29, 2025, has sent mixed signals through financial markets, with Bitcoin's price trajectory reflecting both optimism and lingering fragility. The central bank reduced its benchmark fed funds rate to 3.75%-4.0%, concluding its quantitative tightening program by December 1, according to CoinDesk. While the move aligns with expectations of easing monetary policy, Bitcoin (BTC) traded at $111,700, down 3% over 24 hours, as investors awaited further guidance from Chair Jerome Powell's post-meeting press conference.

The crypto market's reaction underscores a delicate balance between macroeconomic tailwinds and persistent selling pressure. Despite the rate cut, over $550 million in crypto positions were liquidated in the 24 hours preceding the Fed's decision, with Bitcoin accounting for $55 million of the losses, according to Yahoo Finance. Meanwhile, spot Bitcoin ETFs recorded four consecutive days of inflows, totaling $202 million by October 29, signaling institutional demand, according to Coinotag. However, the same Coinotag piece noted that long-term holders (LTHs) sold over 325,000 BTC in October—valued at $35 billion—capping recovery efforts. This divergence highlights a market struggling to reconcile bullish liquidity with bearish distribution.

Bitcoin's on-chain dynamics further complicate the narrative. Net outflows from exchanges reached $20.6 billion in seven days, indicating strong accumulation as investors moved BTC to self-custody, according to Coinotag. Yet, on-chain transaction fees fell 8.6%, suggesting the rally is driven more by spot demand than increased transaction activity, the same Coinotag analysis found. Analysts like Michaël van de Poppe argue, according to Panewslab, that Bitcoin must hold the $111,000-$112,000 support zone to target $150,000 by year-end, but Man of Bitcoin warns of a potential breakdown below $111,242, which could trigger a slide to $108,638.

Beyond Bitcoin, broader market trends reveal shifting dynamics. French lawmaker Éric Ciotti proposed a national Bitcoin reserve, aiming to acquire 420,000 BTC (2% of total supply) over seven to eight years, according to TradingView. Meanwhile, DeFi derivatives markets hit a milestone, with perpetual contract trading volumes surpassing $1 trillion monthly, as reported by Lookonchain. However, Solana's first U.S. spot ETF (BSOL) faces a test: JPMorgan predicts $3-$6 billion in first-year inflows, and Ethereum's $3,900 level remains a critical psychological barrier, both noted in the Panewslab coverage mentioned earlier.

The Fed's rate cut also reignited debates about Bitcoin's role as a "safe haven." Gold advocate Peter Schiff criticized BTC's resilience amid a rising Nasdaq and gold pullback, as reported by Yahoo Finance, while MicroStrategy's Michael Saylor maintained a $150,000 BTC end-of-year target, citing regulatory shifts and tokenized securities adoption, according to Markets.com.

As markets digest these signals, the path forward hinges on Powell's post-meeting remarks and the interplay between ETF inflows, LTH selling, and macroeconomic clarity. With the Nasdaq up 0.5% and the 10-year Treasury yield at 4.02% post-Fed announcement, investors remain split between caution and conviction—a duality that will likely define Bitcoin's next phase.