Bitcoin News Today: Bitcoin's Resilience: Fed's Dovish Pivot Overcomes Powell's Uncertainty

Bitcoin's price swung sharply during Federal Reserve Chair Jerome Powell's recent Powell's speech, plunging then recovering as traders grappled with mixed signals about the central bank's policy path. The crypto market saw a brief but intense sell-off after Powell hinted at uncertainty around future rate cuts, only to rebound as investors recalibrated expectations. The episode underscored the heightened sensitivity of digital assets to U.S. monetary policy, with Bitcoin trading near $113,000 at press time.

The turbulence began following Powell's remarks during a press conference after the Fed's October 29 rate cut. While markets had priced in a 25-basis-point reduction-the first since 2023-Powell's cautionary tone about December decisions triggered a sharp selloff. Bitcoin dropped nearly 2% immediately after his comments, triggering $304 million in liquidations, according to data from crypto analytics platforms. The decline reversed as traders interpreted Powell's comments as a signal that further easing was likely, albeit not guaranteed.

The Fed's decision to cut rates to a target range of 3.75%-4.00% was widely seen as a pivot toward accommodative policy, a move that historically supports risk assets like Bitcoin, according to a CCN analysis. The central bank also confirmed it would end quantitative tightening (QT) by December 1, a step expected to inject liquidity into markets, a Coinotag report noted. However, Powell's refusal to commit to additional cuts in December, citing the government shutdown's data blackout, sowed uncertainty. "We're not following a pre-set path," he emphasized, a statement that rattled traders.

Bitcoin's recovery mirrored broader market optimism about the Fed's dovish shift. The asset rose above $110,500 post-announcement, with crypto funds reporting $931 million in Bitcoin inflows last week. Separately, some investors staked $400M on BTC as Trump met China's Xi, a Yahoo Finance report said. Meanwhile, Ethereum saw outflows, while altcoins like Solana and XRP attracted smaller but notable capital inflows. Analysts noted that lower rates and a weaker dollar typically drive capital toward Bitcoin, reinforcing its "digital gold" narrative.

The Fed's rate cut and QT pause align with a broader easing cycle that has already boosted crypto markets. Since September, Bitcoin has gained nearly 10%, reclaiming ground lost during October's volatility triggered by Trump's tariff threats and the government shutdown. The current rally comes as institutional adoption accelerates, with spot Bitcoin ETFs drawing $30.2 billion in year-to-date inflows.

Powell's remarks also drew political scrutiny. President Trump slammed Powell over the Fed's "slow" rate cuts during a trip to South Korea, arguing for swifter action to offset the economic drag from his new tariffs. Such rhetoric added to market jitters, though most analysts agree that actual policy steps-not political posturing-will dictate Bitcoin's trajectory.

Investors are now eyeing the Fed's December meeting, where a second rate cut is seen as probable. The market currently prices in an 80% chance of a 25-basis-point cut, with further easing expected in 2026. For now, Bitcoin's resilience suggests that crypto markets are embracing the Fed's pivot, even as they brace for Powell's next speech in November.