Bitcoin News Today: Bitcoin Plummets 6% Post-Fed Cut as Binance Dumping Fears and Data Gaps Spark Chaos

Bitcoin's price fluctuated sharply following the Federal Reserve's 0.25% rate cut on October 29, 2025, with the cryptocurrency testing critical support levels amid a mix of macroeconomic uncertainty and market speculation. Despite the Fed's decision to lower the federal funds rate to a range of 3.75%-4.00% and end quantitative tightening (QT), Bitcoin (BTC) fell to $109,200, a 6% drop from its recent peak of $116,400, according to a Cointelegraph report. Traders initially expected the rate cut to bolster risk assets, but the price action defied expectations, highlighting broader concerns about inflation, slowing job growth, and geopolitical tensions, the Cointelegraph piece added.

The sell-off intensified after the Fed's policy announcement, with Bitcoin dropping below $110,000. Traders accused Binance, the world's largest crypto exchange, of manipulating prices by dumping BTC to trigger mass liquidations. On-chain data showed over $15 billion in Bitcoin trading activity on Binance within 24 hours, alongside repeated large transfers from hot wallets. While blockchain analytics firms found no direct evidence of coordinated dumping, the market reacted nervously, with over $120 million in liquidations recorded in under an hour, according to CoinPedia.

Analysts attributed the volatility to a combination of factors. The Fed's rate cut, while easing borrowing costs, came amid a government shutdown that disrupted economic data releases, leaving policymakers reliant on outdated metrics like August's 4.3% unemployment rate, according to The Block. "The lack of fresh data increases the risk of policy missteps, which could amplify market swings," said Timothy Misir, head of research at BRN, in reporting by The Block. Meanwhile, Bitcoin's correlation with traditional risk assets, such as tech stocks, remained strong, complicating its role as a pure inflation hedge, according to a CCN analysis.

The Fed's decision to halt QT starting December 1 added another layer of complexity. By ceasing balance sheet reductions, the central bank aims to stabilize liquidity, a move historically linked to crypto rallies. "This pivot from monetary contraction to neutrality is a bullish catalyst for Bitcoin," said Michael Brown of Pepperstone, a point also discussed in CCN, noting that the end of QT could precede a new easing cycle in 2026. However, market participants warned that the immediate outlook remained fragile. Bitcoin's price hovered near the $110,000-$113,000 range, with a breakdown below $110,000 potentially pushing it toward $108,000 support, according to CoinSpeaker.

Long-term optimism persisted among some investors. Goldman Sachs analysts projected at least two more 25-basis-point cuts in 2026, which could drive the Fed's benchmark rate to 3%-3.25%, the Cointelegraph coverage noted. Hyblock, a crypto analytics firm, noted historical patterns of post-FOMC price dips followed by recoveries, suggesting opportunities for investors if bullish on-chain signals emerge, according to Cointelegraph reporting. Meanwhile, institutional adoption continued to gain momentum, with spot Bitcoin ETFs and reduced supply post-halving providing structural support, as discussed in CCN.

The U.S.-China summit between President Donald Trump and President Xi Jinping in Busan, South Korea, added further uncertainty, with traders wary of geopolitical risks impacting global markets, CoinPedia reported. Despite these challenges, the Fed's dovish stance reinforced Bitcoin's appeal as a hedge against fiat currency debasement. "Lower rates weaken the dollar, making Bitcoin more attractive to international buyers," said Nic Puckrin of The Coin Bureau in The Block coverage.

Bitcoin's path forward hinges on key catalysts: the Fed's December rate decision, the end of QT, and sustained institutional inflows into crypto ETFs. While short-term volatility remains likely, analysts like Geoff Kendrick of Standard Chartered see potential for BTC to reach $200,000 by year-end if liquidity conditions improve, according to CoinPedia. For now, the market watches closely as the interplay of macroeconomic forces and crypto-specific dynamics shapes the next chapter for Bitcoin.