Bitcoin Slips to US $109K as Fed Caution Dampens Crypto Rally

The cryptocurrency market experienced a significant pullback after Federal Reserve Chair Jerome Powell suggested that further rate cuts are not guaranteed.

Bitcoin (BTC-PKR), in particular, slipped beneath the $109,000 threshold, triggering over $1 billion in leveraged liquidations and underscoring its increasing correlation with broader macroeconomic factors.

Macro Mayhem Strikes Crypto Again

On October 30, 2025, the Fed slashed rates by another 25 basis points to 3.75%-4.00%, a move as predictable as Bitcoin’s next “to the moon” meme. But Powell poured ice water on the party by hinting that December’s cut isn’t a “foregone conclusion,” citing stubborn inflation and a resilient economy that apparently doesn’t need more handouts.

With Tesla’s billionaire Elon Musk making waves with a surprising move, bitcoin alarm bells are ringing. Now, bitcoin and crypto analysts are optimistic that a return of liquidity could drive the bitcoin price up in the coming months.

What was supposed to be a liquidity-fueled rocket launch turned into a nosedive, proving once again that digital assets are now Wall Street’s moody sidekick, rising with the Nasdaq’s highs and crashing with its tantrums.

Crypto’s Stockholm Syndrome with Stocks

The Nasdaq-Bitcoin bromance is stronger than ever, with their correlation spiking to around 0.88, meaning crypto’s “decentralized” revolution is basically handcuffed to Big Tech’s whims. Institutional players, those supposed “diamond hands,” bailed faster than rats from a sinking ship. With ETF outflows topping $470 million in one session alone, because why hold through volatility when you can panic-sell?

Whispers of tariffs and deals between Trump-Xi added extra spice to the uncertainty stew, reminding everyone that Bitcoin’s “safe haven” status is about as reliable as a politician’s promise.

Bitcoin’s Technical Tantrum and Levels to Mock

Dropping below $109,000 was a full-on faceplant. As of October 31, 2025, BTC hovers around $109,000 after a brutal 3-5% slide, with over $817 million in liquidations wiping out leveraged dreams (mostly longs, because optimism is expensive).

Ethereum and altcoins joined the pity party, dipping 2-8% as the market realized “decentralized” doesn’t mean “decoupled from the Fed’s mood swings.”

Trade Wars, Policy Pivots, and Future of Crypto

Adding insult to injury, the US-China trade narrative has crypto sweating. Historically, BTC tanks during these policy U-turns, consolidating like a bad habit when rate cuts stall.

In the end, Powell’s “not so fast” has turned crypto’s rate-cut dreams into a nightmare, proving that in this market, the only certainty is uncertainty, and the Fed holds the remote.

Buckle up; November is just getting started.