Bitcoin dropped below $108,000 on October 30, 2025, as the cryptocurrency market shed over $80 billion following the Federal Reserve's 25 basis point interest rate cut. Traders reacted with a 'sell the news' move amid hawkish comments from Fed Chair Jerome Powell signaling no further cuts in December. The decline marks a disappointing end to 'Uptober,' with bitcoin on track for its worst monthly performance since 2014.
The Federal Reserve cut its policy rate by 25 basis points on October 30, 2025, bringing the target range to 3.75% to 4.00%. However, Chair Jerome Powell emphasized during the press conference that another cut in December is 'not a foregone conclusion, far from it,' citing differing views among committee members and a need to monitor incoming data on inflation and labor markets. Futures markets quickly adjusted, pricing out a December cut and assigning an 18% chance of a rate hike by January 2026, according to CME FedWatch Tool.
This hawkish tone overshadowed positive developments, including a U.S.-China trade agreement where China agreed to increase purchases of U.S. soybeans and the U.S. paused plans to expand a blacklist of Chinese companies. Bitcoin, which had reached $116,000 just 72 hours earlier and a record $126,000 earlier in the month, plunged below $108,000, down 4.4% in 24 hours and nearly 8% from its recent high. The broader market lost $80 billion in capitalization, with ether down 5% below $3,800, and major altcoins like XRP, Solana, Dogecoin, and Cardano shedding 5% to 7%.
Crypto-related stocks followed suit, with Coinbase down nearly 3%, MicroStrategy sliding to $268—a 50% drop from its November 2024 high—and other firms like Robinhood and Circle falling 2%. Bitcoin futures open interest rose slightly to $27.2 billion despite $821 million in liquidations, mostly longs (79% to 21% shorts), indicating resilient positioning. Funding rates normalized to neutral levels, while bitcoin dominance dipped from 59.3% to 59.0%, suggesting some altcoins outperformed amid the pressure.
The sell-off disappointed expectations for a bullish 'Uptober,' with bitcoin down more than 5% for the month—its worst October return since 2014. Analysts noted a stickier liquidity environment favoring bitcoin's resilience over higher-beta altcoins into 2026, as higher-for-longer rates support the dollar and firm real yields, constraining crypto's cost of capital.
