Bitcoin Plummets Below $109,000 After Fed Rate Cut — Classic ‘Buy The Rumor, Sell The News
October 30, 2025
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Bitcoin (CRYPTO: BTC) has plummeted below $109,000 after the expected Fed rate cut, prompting renewed debate over whether crypto traders once again fell for a “buy the rumor, sell the news” setup.
What Happened: According to on-chain data provider Santiment, while the rate cut was widely expected, Jerome Powell’s hawkish tone during the post-meeting press conference rattled markets.
The Fed Chair cautioned that another cut in December isn’t guaranteed, citing persistent inflation and limited data visibility due to the ongoing government shutdown.
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Markets initially celebrated the policy move, but enthusiasm faded as Powell emphasized caution over optimism.
Bitcoin fell 5%, slipping below $110,000, while stocks reversed early gains and treasury yields and the U.S. dollar both strengthened.
Traders positioned for a dovish Fed began to unwind risk exposure, triggering another round of crypto liquidations.
Why It Matters: The move marked the second rate cut of 2025, but Powell’s message effectively cooled speculation of an aggressive easing cycle.
The reaction mirrored previous “rate cut fakeouts”, where initial optimism was followed by selloffs once investors digested the fine print.
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Analysts now see two short-term paths: Equities may open lower to catch up with Bitcoin’s decline, or Bitcoin could rebound if risk sentiment stabilizes, particularly if shorts get squeezed above the $115,000 level.
For now, Bitcoin is trading more like gold than equities, reflecting its role as a macro hedge amid tightening liquidity.
The next key catalysts will be inflation and labour data, which determine how far the Fed can go with easing.
Powell’s takeaway is no autopilot on rate cuts.
Traders will need patience and contrarian conviction to navigate what could be another stretch of volatile consolidation.
Image: Shutterstock
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This article Bitcoin Plummets Below $109,000 After Fed Rate Cut — Classic ‘Buy The Rumor, Sell The News’ Reaction? originally appeared on Benzinga.com
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