Bitcoin News Today: Fed's Cautious Stance Sparks Crypto Panic, $884M Liquidations as Fear Index Hits 34

The crypto market's recent selloff deepened on October 30, 2025, as liquidations surged to $884 million, driven by a mix of Federal Reserve caution and geopolitical developments. Bitcoin (BTC) and Ethereum (ETH) faced sharp declines, with BTC dropping to $108,000 before rebounding to $111,336, while the Fear and Greed Index in crypto markets fell to 34, reflecting widespread fear, according to an Incrypted report.

The turmoil followed the Fed's decision to cut interest rates by 25 basis points, bringing the policy rate to 3.75%-4%. However, Fed Chair Jerome Powell's post-meeting remarks dampened optimism, stating a December rate cut was "not guaranteed" due to economic uncertainties and the U.S. government shutdown. "The Fed's pivot to ending quantitative tightening in December signals a bullish undercurrent for risk assets like crypto," noted Nick Ruck of LVRG Research, though short-term volatility persisted.

Simultaneously, the U.S.-China trade meeting in South Korea, which saw reduced tariffs and resumed rare-earth exports, failed to buoy crypto markets. Instead, crypto derivatives saw $150 million in long liquidations within an hour, with Bitcoin, Ethereum, and XRP all losing over 3% in 24 hours, according to an FXStreet report. CoinGlass data showed $812.03 million in total liquidations over 24 hours, including $611.48 million in long positions. Hyperliquid led the liquidations with $285 million, followed by Bybit ($225 million) and Binance ($146 million), the Incrypted report added.

Bitcoin's price swings underscored the market's fragility. After hitting $125,000 in early October, BTC retreated to $107,000, breaching its 200-day exponential moving average—a key technical level. The crypto dominance metric stood at 59.65%, while the Fear and Greed Index fell eight points to 34, the Incrypted report noted.

The selloff also impacted altcoins. Solana (SOL) dropped to $181 as major player Jump Crypto swapped $205 million in SOL for $265 million in BTC, signaling a shift toward perceived safer assets, according to a crypto.news report. Over $72 million in SOL liquidations were recorded in 24 hours, with $70 million tied to long positions.

Analysts remain divided on the outlook. While Powell's caution and trade developments have spooked markets, the Fed's eventual shift away from quantitative tightening could support a crypto rebound. "Cheaper capital flows in over the coming months may position Bitcoin and Ethereum for renewed upside," Ruck added, the Incrypted report said.

At press time, Bitcoin traded at $111,336, with the broader market cap at $3.75 trillion, down nearly 3% in 24 hours.