Bitcoin News Today: Geopolitical Gains vs. Fed Uncertainty: $89M Crypto Liquidations as Trump-Xi Summit Fails to Calm Markets

The cryptocurrency market faced a turbulent 48-hour stretch in late October 2025, with over $89 million in liquidations recorded in the past four hours alone, driven by a sharp sell-off in long positions. The turmoil followed a pivotal meeting between U.S. President Donald Trump and Chinese President Xi Jinping in South Korea, which aimed to ease trade tensions but failed to calm crypto markets amid conflicting signals from central banks and geopolitical uncertainty, according to an FXStreet report.

The Trump-Xi summit, which concluded with China committing to resume rare-earth exports and purchase U.S. soybeans, initially raised hopes for global economic stability. However, the crypto market continued its downward spiral, the FXStreet report noted, as traders grappled with the aftermath of the Federal Reserve's rate-cut decision and mixed messaging from Fed Chair Jerome Powell. Despite the Fed reducing interest rates by 25 basis points to 3.75%-4%, Powell cautioned that a December rate cut was "not a foregone conclusion," citing uncertainty from the U.S. government shutdown and volatile economic data.

CoinGlass data revealed that total liquidations surged to $812 million in the 24 hours leading to October 30, with $611 million attributed to long positions and $200 million to short positions. The most recent hour saw $223.76 million in liquidations, with longs accounting for $157 million. Bitcoin, Ethereum, and XRP all dropped more than 3% in the 24-hour period, compounding losses for leveraged traders.

The Fed's announcement triggered a "sell-the-news" reaction, with Bitcoin plummeting to $108,000 before rebounding to $111,336. The price swing resulted in $820 million in futures liquidations, according to an Incrypted analysis, with Ethereum and Bitcoin traders bearing the brunt of the losses at $365 million and $188 million, respectively. Hyperliquid emerged as the exchange with the highest liquidations, totaling $285 million, followed by Bybit ($225 million) and Binance ($146 million).

Market analysts pointed to the confluence of geopolitical and monetary factors as the primary drivers of the volatility. "While the Fed's pivot to ending quantitative tightening in December is bullish for risk assets, the immediate uncertainty around rate cuts and trade dynamics has left traders exposed," said Nick Ruck of LVRG Research, the Incrypted piece added. The crypto Fear and Greed Index fell to 34, reflecting widespread fear among investors, while Bitcoin's dominance held at 59.65% despite the selloff.

Earlier in the week, the market had already experienced a record $19 billion liquidation event, underscoring the fragility of leveraged positions in a highly volatile environment. The latest wave of liquidations, while significant, paled in comparison to that historic figure but still highlighted the risks of high-leverage trading. "Traders must prioritize prudent leverage and stop-loss orders to avoid cascading liquidations," warned a CoinGlass report, noting that the largest single unwind in the October 30 selloff was a $11 million position on Bybit.

The Trump-Xi meeting's impact on crypto markets remained limited, with trade barriers easing but broader economic concerns persisting. Meanwhile, the Fed's cautious stance left investors in a state of flux, with Bitcoin's price fluctuating between $108,000 and $111,000 in a matter of hours. As the market digested these developments, analysts emphasized the need for disciplined risk management, particularly in an environment where geopolitical and monetary policy shifts can trigger rapid, large-scale liquidations.