Bitcoin News Today: Crypto Markets Split as Fed Rate Cut Clashes with Geopolitical and Regulatory Uncertainties

The Federal Reserve's 25-basis-point rate cut in October 2025 sent mixed signals through global markets, with cryptocurrencies like Bitcoin and Ethereum reacting cautiously to the central bank's decision to lower the federal funds target range to 3.75%-4.00%. While the move was expected to ease financial conditions, crypto markets initially faltered, with Bitcoin dropping below $109,000 and Ethereum slipping under $4,000 in the aftermath of the policy shift, according to Yahoo Finance. Liquidations surged, with over $550 million in crypto positions wiped out in a 24-hour period, driven largely by leveraged traders exiting volatile positions, per a Yahoo Finance analysis.

The Fed's rate cut, intended to stimulate risk assets, was overshadowed by geopolitical tensions, particularly U.S.-China trade negotiations. A tentative one-year trade agreement between the two nations briefly lifted crypto markets, sending Bitcoin surging $2,000 above $108,000. However, the rally was short-lived, as traders remained wary of broader macroeconomic uncertainties, as noted by Yahoo Finance. Analysts also observed that Bitcoin's performance around Federal Open Market Committee (FOMC) decisions has trended downward this year, with the recent rate cut reinforcing skepticism about the asset's resilience amid shifting liquidity conditions, according to the earlier Yahoo Finance analysis.

Central banks' hawkish posturing further muddied the outlook. The Fed revised its 2026 rate-cut projections from four to two, signaling a "higher for longer" policy stance that spooked investors. The Bank of Japan's decision to maintain rates also contributed to a cautious market environment, with futures markets pricing in an 18% probability of a rate hike before year-end, as reported by Yahoo Finance. Bybit's analysis highlighted the structural maturation of crypto markets, noting subdued volatility despite supportive macroeconomic conditions.

Political developments added to the uncertainty. President Donald Trump's public criticism of Fed Chair Jerome Powell, including threats to replace him by year-end, heightened market jitters. Powell's own remarks during the press conference, emphasizing a "foggy" economic outlook and the risks of a weakening labor market, further dampened investor enthusiasm, according to Capital.

Crypto ETF flows reflected the divided sentiment. Bitcoin spot ETFs saw $3.61 billion in net inflows for October, despite a $290.88 million outflow from BlackRock's iShares Bitcoin Trust on October 30, according to FinanceFeeds. In contrast, Ethereum ETFs faced sharp redemptions, with BlackRock's product alone recording a $101 million daily outflow, per Blockchain.News. Analysts attributed the divergence to Bitcoin's perceived stability as a long-term store of value versus Ethereum's regulatory and technical uncertainties, as noted by FinanceFeeds.

Regulatory developments also loomed large. A stalled U.S. crypto market structure bill, backed by bipartisan support, remained gridlocked amid the government shutdown. Key industry figures, including Coinbase's Brian Armstrong, expressed optimism about a potential resolution by Thanksgiving, though prediction markets gave the legislation only a 25% chance of passing by year-end, reported CryptoNews.

As the year closes, markets remain in a holding pattern, awaiting clarity on the Fed's December decision and broader economic signals. Bybit's report underscored that crypto assets are increasingly behaving as high-beta instruments, sensitive to liquidity shifts but shaped by internal dynamics like ETF flows and regulatory developments (the Bybit report was cited above).