Bitcoin News Today: Powell's Uncertainty Sparks Selloff, Bitcoin Falls Below $110K

Bitcoin fell below $110,000 on Wednesday as Federal Reserve Chair Jerome Powell signaled uncertainty about a December rate cut, catching markets off guard and triggering a broader selloff. The cryptocurrency dropped 5% in 24 hours to $109,600, erasing recent gains amid Powell's unexpectedly hawkish remarks during his post-FOMC press conference, a CoinDesk report said.

The Fed, as widely anticipated, cut its benchmark interest rate by 25 basis points to 3.75%-4.00%, CoinDesk reported, marking its second reduction this year. However, Powell's insistence that a December cut "is not a foregone conclusion" rattled traders who had priced in a 90% probability of further easing, a Bitcoin.com post noted. "We haven't made a decision about December," Powell said, emphasizing a data-dependent approach. The comments sent Treasury yields surging and the dollar climbing, while stocks and Bitcoin slumped.

Bitcoin's decline accelerated after the Fed's dot plot showed a baseline of three 2025 rate cuts but offered no clarity on 2026, according to a Cointelegraph article. Analysts at Goldman Sachs previously projected two more cuts in early 2026, but Powell's remarks introduced volatility. The price action defied expectations, with Bitcoin falling 6% from a recent peak of $116,400 despite the rate cut. Hyblock analysts noted that post-FOMC selloffs have historically been followed by rebounds, but cautioned that macroeconomic headwinds—such as a weakening labor market and inflation—could prolong downward pressure.

The selloff extended to traditional markets, with the Dow Jones Industrial Average dropping nearly 200 points post-announcement. Short-term Bitcoin futures saw $261 million in liquidations, with long positions accounting for 82% of losses. Meanwhile, spot ETFs showed resilience, adding $260 million in three sessions as retail buyers continued to "buy the dip," a Cryptodnes analysis observed.

Powell's remarks also reignited debates about the Fed's policy trajectory. While the central bank has cut rates twice this year, the dot plot now suggests a more cautious path, with officials signaling a wait-and-see approach. This uncertainty contrasts with bullish forecasts from figures like Michael Saylor, who predicted Bitcoin could reach $150,000 by year-end in a TradingView article. However, analysts at The Kobeissi Letter warned that Bitcoin's range-bound action between $110,000 and $116,000 reflects market indecision until key events—including U.S.-China trade talks—provide clarity.

Global trade developments added another layer of complexity. After Trump's initial tariffs sparked a market crash in October, softened rhetoric and a planned meeting with Chinese President Xi Jinping offered hope for a deal. U.S. Treasury Secretary Scott Bessent's endorsement of stablecoins further fueled optimism, though crypto traders remained cautious ahead of the Fed's next moves.