Bitcoin News Today: "Regulators Greenlight Crypto ETFs as Market Stumbles on Fed Uncertainty"

The U.S. Securities and Exchange Commission's approval of the Bitwise 10 Crypto Index ETF has injected fresh momentum into the crypto market, with Bitcoin (BTC), Ethereum (ETH), XRP, and Dogecoin (DOGE) all experiencing sharp price spikes in recent days. The fund, which holds 85% exposure to SEC-approved assets like Bitcoin and Ethereum, reflects a growing institutional appetite for regulated crypto products. XRP, in particular, has seen surging demand, with Canary Capital's XRP ETF (XRPC) recording $250 million in first-day inflows, the strongest debut among over 900 ETFs launched in 2025.

However, the broader crypto market remains under pressure. The recent collapse in Bitcoin's price-dropping below $90,000 amid a broader market rout-has led analysts to question the sustainability of the current rally. The crypto market cap fell to $3.15 trillion on Nov. 17, driven by global equity sell-offs and fears of tighter monetary policy. "The BTC narrative collapse was inevitable given the lack of fundamental support," one analyst noted, citing Glassnode data showing panic selling as a key driver.

The Federal Reserve's stance on rate cuts has become a critical factor. While some Fed officials, including Governor Christopher Waller, advocate for a December rate cut to support the weakening labor market, others argue inflation remains a concern. Minutes from the October Federal Open Market Committee meeting revealed deep divisions, with the likelihood of a third 2025 rate cut now hovering below 30% on prediction markets. This uncertainty has damped crypto market optimism, as lower rates typically boost risk-on assets.

Meanwhile, the Asia-Pacific region's rebound on renewed hopes of Fed easing has created a mixed outlook. A Bloomberg analysis highlights a historical correlation between crypto prices and equity risk appetite, with Bitcoin and Ethereum often rallying alongside global stock markets. However, the Fed's delayed release of October inflation data and conflicting signals from regional bank presidents-such as New York Fed's John Williams supporting cuts versus Boston Fed's Susan Collins opposing urgency-have muddied the waters.

Analysts remain cautious. Despite short-term volatility, the long-term potential for crypto ETFs is intact. The Bitwise 10 ETF's approval underscores the SEC's gradual acceptance of diversified crypto products, which could attract further institutional capital. Yet, Bitcoin's path to recovery remains fraught. Technical indicators suggest BTC could test support levels around $58,000 before resuming an upward trajectory, contingent on Fed policy clarity and sustained equity market gains.