Bitcoin News Today: As Fed Eases, Bulls Target $150K for Bitcoin While Skeptics Warn of Fragility

The Federal Reserve's 25-basis-point rate cut in late October, lowering the federal funds target range to 3.75%-4.00%, triggered a wave of volatility across financial markets, with crypto assets bearing the brunt of the turbulence, as reported by Yahoo Finance. The move, aimed at easing financial conditions, coincided with roughly $550 million in crypto liquidations in the 24 hours preceding the announcement, including $100 million in leveraged positions tied to Bitcoin (BTC). Derivatives traders and analysts have since adopted a cautious stance, with figures like Killa (@KillaXBT) warning that Bitcoin remains range-bound, hovering near $111,000 without regaining upward momentum.

The Fed's decision to conclude its balance sheet reduction program—commonly known as quantitative tightening (QT)—by December 2025 has added another layer of complexity, as noted by StreetInsider. This shift, which marks a return to a more neutral monetary policy, is expected to inject liquidity into financial markets, potentially benefiting risk assets like Bitcoin. However, the immediate aftermath of the rate cut saw Bitcoin ETFs post $470 million in outflows, despite the Fed's easing, as uncertainty over US-China trade talks and macroeconomic stability persisted.

Amid the volatility, Michael Saylor, co-founder of MicroStrategy, and Robert Kiyosaki, financial educator and crypto advocate, have maintained a bullish outlook. Saylor predicted Bitcoin could surge to $150,000 by the end of 2025, according to TradingView, citing regulatory progress, tokenized securities adoption, and institutional interest. Kiyosaki echoed this, framing Bitcoin's current pullback as a mid-cycle correction rather than a trend reversal, as reported by BeInCrypto.

Conversely, critics like gold advocate Peter Schiff argue Bitcoin's recent underperformance—despite a gold pullback and a rising Nasdaq—exposes its fragility as a "safe haven" asset. Schiff's skepticism aligns with broader market concerns about Bitcoin's resilience amid tightening liquidity and shifting Fed policy.

The crypto market's mixed signals have not deterred institutional players. France's Éric Ciotti proposed a national Bitcoin strategic reserve, targeting 2% of the total supply (around 420,000 BTC) to be acquired over seven to eight years, as reported by TradingView. Meanwhile, California regulators fined Bitcoin ATM operator Coinhub $675,000 for overcharging customers and breaching transaction limits under the state's Digital Financial Assets Law, highlighting ongoing regulatory scrutiny of crypto infrastructure, according to Coinotag.

The Fed's pivot to resuming Treasury purchases in early 2025 is also drawing attention; analysts suggest the move could stabilize banking reserves and ease market pressures, indirectly supporting Bitcoin by improving liquidity and investor confidence, as explained by Coinotag.

Adding to the uncertainty, Trump ally Senator Cynthia Lummis proposed selling Federal Reserve gold reserves to purchase 1 million bitcoins, framing it as a way to establish a strategic reserve without increasing the deficit, as covered by Moomoo. The plan, which faces political and economic hurdles, could theoretically leverage the Fed's $675 billion in gold holdings (valued at current prices) to fund the purchase. While Saylor and Kiyosaki's bullish forecasts hinge on regulatory clarity and macroeconomic stability, Lummis's proposal underscores the polarized views on Bitcoin's role in global finance.

As US bank reserves approach 2020 lows, the question of Bitcoin's viability as a hedge remains unresolved. While institutional investors and policymakers like Saylor and Lummis push for adoption, skeptics like Schiff highlight the asset's volatility and macroeconomic vulnerabilities. With the Fed's policy shift and regulatory developments shaping the landscape, the coming months will test whether Bitcoin can solidify its position as a long-term store of value—or remain a speculative asset amid shifting tides.

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