Bitcoin News Today: Uncertain Fed Policy Drives $550M Exit from Crypto ETFs as Bitcoin Dips

The U.S. Federal Reserve's 25-basis-point rate cut on October 29 sent ripples through cryptocurrency markets, triggering heavy withdrawals from Bitcoin and Ethereum ETFs while leaving Bitcoin's price volatile near $108,000. The decision, the first reduction since 2023, marked a pivot toward monetary easing amid cooling inflation and softening labor markets, but traders remained divided on its implications for digital assets.

According to CoinPedia's Fed uncertainty triggers $550M exit, Bitcoin ETFs lost $470.71 million in net outflows on October 29, with Fidelity's FBTC and Ark & 21Shares' product leading the exodus with $164.36 million and $143.80 million, respectively. Ethereum ETFs also saw outflows of $81.44 million, though BlackRock's ETHA fund bucked the trend with $21.36 million in inflows. The moves came as Fed Chair Jerome Powell hinted the rate cut might be the final one of 2025, stoking uncertainty about future policy and prompting crypto traders to reassess risk exposure.

Bitcoin's price fell 3.71% to $108,325.44, while Ethereum dropped 2.68% to $3,904.19. Despite the Fed's easing stance, markets reacted cautiously, with the Crypto Fear and Greed Index registering 32 ("Fear"). Analysts noted that while lower rates typically boost liquidity for risk assets like Bitcoin, the Fed's warning that further cuts are not guaranteed this year added to short-term jitters.

In a report titled Nomura eyes steady policy, Nomura analysts revised their outlook, predicting no additional rate cuts in December and emphasizing that labor market weakness alone would not trigger aggressive easing. "Data are likely to be modestly dovish, but we doubt the weakness will rekindle FOMC concerns about a deteriorating labor market," the firm stated. This cautious stance contrasted with bullish predictions from 21Shares' Matt Mena, who argued that structural demand from ETF inflows and dovish policy could propel Bitcoin toward $150,000.

Technical indicators suggested Bitcoin faced immediate headwinds. The asset fell below $108,000, breaking down from a multi-week triangle pattern and testing critical support at $93,000–$92,000. "A failure to defend this area could expose Bitcoin to deeper losses toward $90,000," analysts warned, noting a potential breakdown to $93,000. Meanwhile, on-chain data showed reduced exchange inflows and sustained holder accumulation, signaling resilience amid volatility.

The Fed's decision to end quantitative tightening (QT) by December 1 added another layer of complexity. While halting balance sheet reductions was seen as liquidity-positive for risk assets, traders questioned whether the move alone could offset broader macroeconomic headwinds, including a weakening jobs market and persistent inflation above 2%. Cointelegraph reported that Bitcoin tumbles to $109.2K, and Goldman Sachs analysts projected at least two more 25-basis-point cuts in 2026, but Bitcoin's 6% drop from its October 28 high to $109,200 suggested markets were pricing in a more cautious path.

As Coinotag observed, the QT end may bolster Bitcoin, but traders questioned whether the move alone could offset broader macroeconomic headwinds. Market participants are now closely watching Powell's post-meeting comments for clarity on the Fed's roadmap. His assertion that "another rate cut in December is not a foregone conclusion" deepened uncertainty, with Treasury yields rising and the probability of a December cut falling to roughly 50%. "Powell's language is political posturing," argued Quinn Thompson of Lekker Capital, noting the Fed's leverage in negotiations over government reopenings.

Despite the near-term turbulence, long-term optimism persists. U.S.-listed Bitcoin ETFs have attracted over $6 billion in inflows this month, pushing global crypto assets under management toward $300 billion. Regulatory developments, including potential 401(k) exposure to cryptocurrencies, could further bolster demand. However, with Bitcoin trading near critical support levels and the Fed's policy path still in flux, investors remain cautiously positioned for a potential rebound-or deeper correction.