Bitcoin News Today: Fed's Rate Dilemma Sparks Crypto Exodus, Bitcoin Falls Below $100K

Bitcoin prices plunged below $100,000 on November 17, 2025, marking the first time since June that the world's largest cryptocurrency has fallen to this level, triggering a broader sell-off across digital assets and traditional markets. The decline, which saw Bitcoin drop nearly 10% in a week and trade at over 25% below its October peak, has intensified concerns about a "mini bear market", with institutional investors pulling $3.2 billion from digital asset products over three weeks. US spot Bitcoin ETFs alone recorded $1.1 billion in outflows last week, the fourth-largest weekly exodus on record, as weakening momentum and fading demand signaled a shift in investor sentiment according to market data.

The selloff coincided with a sharp deterioration in macroeconomic expectations, particularly regarding Federal Reserve policy. Markets now price in a 44% chance of a 25-basis-point rate cut in December, down from 62% a week earlier, as Fed officials emphasized caution amid persistent inflation risks. Polymarket data further underscored the shift, showing a 53% probability of no rate cut in December—the first time no-change odds have exceeded cut expectations. This uncertainty has bolstered the US Dollar Index, which climbed to 99.50, while crypto markets grappled with cascading liquidations, including $243 million in Bitcoin futures positions closed in 24 hours according to market reports.

Amid the turmoil, JEXAI, an AI-powered blockchain platform, emerged as a potential alternative for investors seeking stable returns. The firm claims its AI-driven smart contracts can optimize energy use, reduce electricity costs by 60%, and dynamically allocate computing power across cryptocurrencies like Bitcoin and Ethereum. With a user-friendly interface, JEXAI aims to democratize access to passive income, positioning itself as a solution for crypto novices and institutional players alike.

Market participants are now closely watching key levels for Bitcoin, currently trading near $95,000, to gauge whether short-term stabilization can hold according to analysts. Laser Digital analysts noted that while perp-led selling has eased, the market remains fragile, with a potential short squeeze scenario if prices reclaim $98,500 as they warn. Meanwhile, Ethereum and Solana ETFs have also struggled, with ETH ETFs posting $178 million in outflows last week, highlighting broad-based weakness in crypto.

The Fed's policy trajectory remains pivotal. Fed Governor Waller advocated for a December rate cut to address a "weakening labor market," contrasting with more hawkish colleagues who warn against easing amid inflation risks according to market analysis. With the September nonfarm payrolls report due on November 20, markets will scrutinize data for clues on the central bank's next move as expectations evolve.