Bitcoin News Update: Fed's Softened Rate Cut and Cautious Tone Keep Bitcoin in Uncertain, Volatile Territory

The U.S. Federal Reserve’s much-anticipated 25 basis point rate reduction, which brings the federal funds rate down to 3.75%-4.00%, has led to a varied reaction in the crypto sector.

(BTC) fell by 3% to roughly $110,000 after the announcement, as highlighted in a . Although Chair Jerome Powell confirmed the move and 97% of traders had already priced it in, according to a , Powell’s firm tone—indicating that a December rate cut is not certain—overshadowed the dovish policy, prompting a “sell the news” response, as Coinotag noted. This turbulence highlights how Bitcoin is highly reactive to central bank signals, with market sentiment often driven more by expectations than by actual policy changes.

Technical signals point to Bitcoin’s current vulnerability. The daily Relative Strength Index (RSI) is at 44.87, reflecting a bearish tendency, while the four-hour RSI is nearing oversold territory at 36.38, according to Coinotag. The Average Directional Index (ADX) is under 25 on both timeframes, indicating a lack of clear direction among traders. Meanwhile, Exponential Moving Averages (EMAs) show mixed signals: the 50-day EMA remains above the 200-day EMA on daily charts, supporting a longer-term bullish outlook, but a “death cross” on the four-hour chart—where the 50-period EMA falls below the 200-period—signals short-term downward momentum, as Coinotag reports. Analysts point out that such crossovers often precede shifts in sentiment, though ongoing institutional investment is helping to offset immediate selling pressure.

Bitcoin ETFs, which serve as a gauge of institutional interest, saw $202.48 million in net inflows on October 28, pushing the cumulative total to $62.3 billion, according to Coinotag. This strength stands in contrast to the $488.43 million in outflows on October 30, mainly from BlackRock’s IBIT ETF, as noted in a

. Despite these outflows, analysts stress that continued ETF inflows demonstrate faith in Bitcoin’s long-term prospects, even as short-term volatility remains.

The Fed’s latest move comes amid broader economic uncertainty. The ongoing U.S. government shutdown—the second-longest on record—has delayed key economic data and heightened market anxiety, according to a

. Analysts such as “CryptoOracle” suggest that a temporary liquidity squeeze could push Bitcoin into a “fear range” between $65,000 and $75,000 before a recovery, depending on how quickly the funding deadlock is resolved, as mentioned in an . On the other hand, the TradingView roundup reports a 98.3% chance of another Fed rate cut by year-end, which could reignite bullish sentiment, with some strategists predicting a climb to $250,000 by 2027, as discussed in the same interview.

At the same time, geopolitical and regulatory shifts are shaping Bitcoin’s story. France’s proposed Bitcoin Strategic Reserve, aiming to acquire 2% of the total supply (420,000 BTC) over seven to eight years, was outlined in the TradingView roundup and signals growing institutional interest. Likewise, Steak 'n Shake’s Bitcoin Treasury program, which rewards customers with 210 satoshis per meal through the Fold app, highlights crypto’s increasing presence in everyday commerce.

Currently, Bitcoin’s key support is found between $110,000 and $111,000, with a drop potentially testing $108,000 near the 200-day EMA, Coinotag warns. If selling pressure grows, the psychological support at $100,000 could be challenged, though steady ETF inflows make a deeper decline less likely, according to Coinotag. Traders are also watching resistance at $113,000 and $114,500, as well as Powell’s post-meeting comments for further direction, as summarized in a

.

Looking ahead, reclaiming the $112,500 level with an ADX above 25 could set the stage for a move toward $120,000, according to Coinotag. For now, the market is delicately balanced: short-term bearish signals are countered by strong long-term fundamentals, as institutional adoption and shifting macroeconomic conditions continue to reshape Bitcoin’s place in the global financial system.

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