Bitcoin News Today: Institutional Investors Shift to Short-Term Treasuries as Fed Uncertainty Drives Crypto Exodus

Bitcoin Volatility Surges Amid Fed's Monetary Policy Uncertainty

Bitcoin's price plunged below $100,000 on Nov. 4, 2025, marking its first drop below that level in three months and triggering over $1.3 billion in liquidations across the crypto market, according to Yahoo Finance. The selloff, fueled by false rumors of a Wintermute-Binance lawsuit and large-scale whale offloading, underscored the digital asset's heightened sensitivity to macroeconomic shifts and regulatory uncertainty, as Coinpedia reported. Meanwhile, the Federal Reserve's recent rate cuts and signals of further easing have created a volatile environment, with investors recalibrating their exposure to risk assets.

The Fed's decision to cut the federal funds rate to 3.75%-4.0% in October 2025 has intensified market speculation about future monetary policy, complicating Bitcoin's price trajectory, according to a WRAL Markets article. While the central bank concluded its quantitative tightening program, inflation remains above the 2% target, and the 2-year Treasury note yields 3.60%, reflecting lingering macroeconomic pressures noted in that article. This backdrop has driven institutional investors to reallocate capital from crypto to short-term U.S. Treasuries, with the Global X Short-Term Treasury Ladder ETF (SLDR) recently declaring a $0.155 monthly dividend—translating to a 3.7% forward yield. SLDR's laddered portfolio of 1-3 year Treasuries offers a stable alternative as Bitcoin faces outflows, with spot Bitcoin ETFs recording $799 million in redemptions over a single week, according to Blockchain Magazine.

The exodus from crypto ETFs has accelerated, with BlackRock's IBIT alone accounting for over 50% of Bitcoin ETF outflows, as Coinotag reported. Ethereum ETFs also saw $219 million in net redemptions, though Solana-based products attracted $70 million in inflows, signaling a potential institutional pivot toward altcoins, according to Crypto.News. That shift highlights growing interest in high-throughput blockchains like Solana, which processes 65,000 transactions per second, a point the Coinotag piece reiterated. However, Bitcoin's dominance remains intact, with its network hashrate hitting record highs at 650 EH/s and institutional buyers snapping up 397 BTC for $45.6 million in recent days, per TradingView.

Technical indicators paint a bearish near-term outlook for Bitcoin, which now trades near $101,290, testing support at $103,321, as the Yahoo Finance report noted. The MACD and Keltner Channel metrics suggest continued downward momentum, with a break below $106,600 potentially pushing prices toward $98,000, according to analysis cited by TradingView. Market sentiment has deteriorated, with the Crypto Fear and Greed Index hitting "extreme fear" levels, a trend documented by Blockchain Magazine, while geopolitical risks—including a U.S. Supreme Court case on Trump's tariff powers—have exacerbated risk-off behavior reported earlier.

Despite the volatility, some analysts argue that Bitcoin's long-term fundamentals remain robust. Poain BlockEnergy's 2025 report emphasizes the role of AI and blockchain in reshaping digital wealth management, positioning the ecosystem for scalable growth. Yet, immediate challenges persist, including the Fed's uncertain rate path and the potential for a 10% equity market correction, as warned by Wall Street executives and noted in earlier coverage.