Bitcoin News Today: Fed's Dovish Pause Sparks $550M Crypto ETF Exodus as Bitcoin Nears $100K Support

Bitcoin's price tumbled to $108,325.44 on October 29 as uncertainty over Federal Reserve policy triggered a $550 million exodus from crypto exchange-traded funds, signaling growing investor unease ahead of a potential $100,000 support level. The sell-off, described by analysts as a "capitulation" phase, coincided with the Federal Reserve's signal that its recent 25-basis-point rate cut might be the last of 2025, intensifying volatility in crypto markets, according to a Coinpedia report.

Coinpedia reported that Bitcoin ETFs saw a net outflow of $470.71 million, with Fidelity's FBTC leading the exodus at $164.36 million. Ark & 21Shares' joint fund also lost $143.80 million, while BlackRock's IBIT, Grayscale's GBTC, and Bitwise's BITB collectively accounted for an additional $159.12 million in withdrawals. The decline marked a stark reversal from the previous day's inflows, as investors retreated amid fears of a prolonged low-interest-rate environment, the report said.

Ethereum ETFs fared slightly better but still recorded $81.44 million in outflows. Fidelity's FETH led the retreat with $69.49 million, while Grayscale's ETH and ETHE products lost $16.18 million and $12.83 million, respectively. BlackRock's ETHA was the lone exception, attracting $21.36 million in inflows. Overall, Ethereum's ETF trading value rose to $2.43 billion, though its market cap now stands at $471.23 billion, down 2.68% in 24 hours, Coinpedia noted.

The market turbulence mirrored broader crypto price declines. Bitcoin's daily trading volume surged to $64.45 billion, but its market capitalization dipped to $2.17 trillion as the asset fell below the psychologically significant $110,000 threshold. Ethereum's trading volume hit $38.44 billion, though its share of the market cap now accounts for just 5.58%, the Coinpedia report added.

Analysts attribute the selloff to Powell's remarks during the Fed's October meeting, which suggested a pause in rate cuts for 2025. "The market is pricing in a prolonged dovish bias, which is bad news for crypto," said one strategist, noting that higher borrowing costs typically weigh on assets with longer-duration cash flows — a point highlighted by Coinpedia.

The ETF outflows highlight a broader shift in investor sentiment. Bitcoin's total ETF assets under management now sit at $149.98 billion, representing 6.75% of its market cap. For Ethereum, ETF assets fell to $26.60 billion, or 5.58% of its total value. While these figures remain elevated compared to earlier in the year, the recent outflows signal a loss of confidence in crypto's ability to outperform traditional assets amid a tightening monetary policy cycle, the Coinpedia report said.

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