Bitcoin News Today: Fed's Mixed Signals and Cautious Stance Push Crypto Lower

The cryptocurrency market faced renewed uncertainty in early November 2025 as the Federal Reserve and Bank of Japan (BoJ) delivered mixed signals on future monetary policy, dampening optimism for a post-October rebound. Despite rate cuts in October, central banks' cautious outlook—projecting delayed easing cycles—left Bitcoin and Ethereum under pressure, with liquidations exceeding $700 million across major exchanges, according to a Yahoo Finance article. The Fed's revised 2026 forecast, slashing expected rate cuts from four to two, underscored a "higher for longer" stance, while the BoJ's decision to hold rates highlighted concerns over global inflation and U.S. trade policies, the Yahoo Finance article added.

The Fed's 25-basis-point cut on October 29, though priced in by markets, failed to ignite a rally. Chair Jerome Powell's remarks emphasized vigilance on inflation, reinforcing skepticism about further 2025 reductions, a Coinpedia analysis noted. Dallas Fed President Lorie Logan, dissenting from the decision, argued the cut was unnecessary, citing a "balanced" labor market and inflation risks remaining above target, according to an Investing.com report. This hawkish divide within the Fed intensified market jitters, with futures pricing in an 18% chance of a rate hike by year-end, the Yahoo Finance article said.

Crypto prices reflected the unease. Bitcoin fell below $107,000, erasing gains from October's "Uptober" rally, while Ethereum dipped into the $3,600 range, the Yahoo Finance article reported. Analysts highlighted two potential paths for Bitcoin: a short-term correction to $104,000 if the Fed adopts a cautious tone, or a rebound toward $120,000 with dovish signals, Coinpedia suggested. The market's volatility was compounded by heavy liquidations, with over $409 million in long positions wiped out in the 24 hours preceding the FOMC meeting, according to a Coinpedia report.

Equity fund flows also mirrored crypto's caution. U.S. equity inflows slowed to $1.81 billion in the week leading up to the Fed's decision, a sharp drop from $9.65 billion the prior week, as investors awaited clarity on monetary policy, Investing.com noted. Meanwhile, large-cap tech funds attracted inflows, contrasting with outflows in mid- and small-cap segments.

The Fed's decision to pause balance sheet runoff, announced alongside the rate cut, added another layer of complexity. Logan supported the move, noting that elevated money market rates indicated the Fed's balance sheet was nearing normal size, according to a Reuters report. However, the absence of official economic data due to the U.S. government shutdown left policymakers reliant on private-sector indicators, complicating assessments of inflation and employment trends, the Investing.com report added.

Looking ahead, the market remains split. While a 96.7% probability of a December rate cut is priced in, Powell's speech will likely dictate near-term crypto trajectories, a Coinpedia preview said. "Monetary easing periods tend to fuel speculative assets," one analyst noted, but uncertainty over the pace of cuts and inflation risks could prolong crypto's stagnation, the preview warned.