Bitcoin News Today: Fed's Rate Cut Fuels Crypto Optimism as $18M October Hacks Expose Security Gaps

October 2025 marked a turbulent month for cryptocurrency security. According to the Shield Protocol report, the period saw 15 significant hacking incidents that resulted in total losses of $18.18 million. The report underscores growing vulnerabilities in the crypto ecosystem, even as broader market dynamics—such as Federal Reserve policy shifts and institutional Bitcoin adoption—continue to shape investor sentiment.

The Federal Reserve's decision to cut interest rates by 25 basis points in October, bringing the benchmark rate to a range of 3.75%–4.00%, has fueled optimism in crypto markets, as noted in a Forbes analysis. The move, aimed at addressing a softening labor market and economic uncertainty, has increased the likelihood of further cuts in December, with markets pricing in a 98.3% probability, per a TradingView note. Analysts suggest lower borrowing costs could incentivize institutional investment in Bitcoin, a trend reflected in recent data showing Bitcoin investment inflows of $931 million for the week ending October 24.

Despite these macroeconomic tailwinds, the October hacking spree highlights persistent risks in the crypto space. Shield Protocol's findings align with broader concerns about security lapses, particularly as institutional participation in Bitcoin markets intensifies. Retail trading's share of Bitcoin volume has dwindled to 0.48%, according to CryptoQuant; this trend is also reflected in a Nasdaq report. The shift suggests a maturing market but also raises questions about the concentration of risk in less-regulated corners of the industry.

The Fed's rate cuts have also had mixed effects on equity markets. While the Nasdaq and S&P 500 rebounded slightly after the October 29 rate decision, the Russell 2000 index continued its decline, reflecting fragility in small-cap stocks, according to a Nasdaq coverage. Meanwhile, European markets data show the Stoxx 600 edging down 0.1% and the FTSE 100 rising 0.61%. These divergent performances underscore the complexity of global market reactions to U.S. monetary policy.

Institutional confidence in Bitcoin appears to be growing, with French lawmakers even proposing a national Bitcoin reserve targeting 2% of the total supply, according to a Coinotag report. However, retail traders remain cautious, with Bitcoin's price consolidating between $111,000 and $115,000 as smaller investors drive market activity, according to CoinSpeaker commentary. This range-bound trading contrasts with earlier whale-led rallies, signaling a potential shift in market dynamics.

The October hacking incidents reported by Shield Protocol serve as a stark reminder of the need for robust security measures in the crypto industry. As institutional adoption accelerates, experts warn that outdated protocols and inadequate safeguards could leave projects vulnerable to exploitation. The $18.18 million in losses reported this month highlights the urgency of addressing these risks, particularly as regulatory clarity and technological innovation continue to evolve, as previously reported by Coinotag.