Bitcoin News Today: Fed's Hawkish Rhetoric Clashes with Record Liquidity Injections, Crypto Uncertain

Bitcoin and major cryptocurrencies plunged in early November 2025 amid a mixed policy signal from the Federal Reserve, with Ether, Solana, and XRP each dropping over 8% as traders grappled with the central bank's 25-basis-point rate cut. The global crypto market cap fell below $4 trillion, hitting $3.68 trillion, as Bitcoin slid 3.5% below $109,000 in the wake of the Fed's decision, according to an Economic Times report. Ethereum followed suit, tumbling 3.6% to $3,871, while Solana, XRP, and other altcoins posted losses exceeding 4%. The sell-off intensified after Fed Chair Jerome Powell's hawkish remarks, which dampened expectations for further easing and triggered $812 million in liquidations over 24 hours, as noted in a Crypto.news analysis.

The Fed's actions, however, revealed a nuanced strategy. While Powell emphasized restraint, the central bank quietly injected $29.4 billion into the banking system through overnight repos—the largest liquidity boost in five years—highlighted in an Economictimes piece. U.S. bank reserves have fallen to a four-year low of $2.8 trillion, signaling systemic fragility despite the Fed's public tightening stance. Analysts noted the move as a "quiet pivot," balancing inflation control with financial stability.

Despite the near-term volatility, optimism for Bitcoin's November performance persists. Historical data shows Bitcoin has averaged 11.2% gains in the month over the past 12 years, according to a Yahoo Finance analysis. Whale activity has surged to a two-month high, and spot Bitcoin ETFs added $3.69 billion in October, reflecting institutional confidence. Edul Patel of Mudrex and JPMorgan analysts both cited November's seasonal strength and the Fed's December rate cut potential as bullish catalysts, a point also raised in the Yahoo Moonvember piece.

Technical indicators also point to a potential reversal. Bitcoin's consolidation near $115,000—a key resistance level—suggests a breakout could drive prices toward $125,000 or higher. On-chain data highlights critical support at $111,000 and supply pressure near $117,000, with a successful breakout expected to reignite momentum. Meanwhile, DeFi Technologies' Andrew Forson emphasized that lower rates historically benefit crypto, though short-term earnings reports could sway sentiment, as reported by Crypto.news.

Market observers remain cautious. The Crypto Fear & Greed Index dropped to 34, signaling fear, as traders brace for a "Moonvember" rally or a deeper correction (reported by Crypto.news). Geopolitical risks, including tariff threats and regulatory scrutiny in Asia, could prolong volatility—a theme explored in the Yahoo Moonvember piece. Yet bullish narratives persist: BlackRock's ETF inflows and the end of quantitative tightening by December 1 are seen as liquidity tailwinds.

As the Fed's December meeting looms, the crypto market's fate hinges on a delicate balance. Powell's hawkish rhetoric clashes with the central bank's liquidity injections, creating uncertainty for risk assets. For now, Bitcoin's path remains constrained by $115,000 resistance, but November's historical performance and improving fundamentals suggest a bullish inflection could still materialize.