Bitcoin price tumbled to $108,000 ahead of the Federal Reserve’s decision to cut interest rates by 0.25%. The drop came despite widespread expectations for the rate cut among traders and analysts.
The cryptocurrency fell 6% from its Monday rally to $116,400. This decline surprised some market watchers given that the rate cut was fully priced into the market.
The Federal Reserve’s Federal Open Market Committee lowered its benchmark overnight borrowing rate to a range of 3.75% to 4%. The decision was in line with the 100% consensus among analysts for a 0.25% cut.
Bitcoin’s price action ran counter to trader expectations. Many believed rate cuts would support cryptocurrency prices in the near term.
The Fed also announced it would end quantitative tightening on December 1. This marks a shift toward easier financial conditions after two years of tighter monetary policy.
Analysts at Hyblock noted that recent history shows the FOMC typically leads to a price drop in Bitcoin followed by a move up. This pattern occurred in both no rate change and rate cut scenarios.
Bitcoin briefly fell to $108,000 on Thursday after a meeting between President Donald Trump and Chinese President Xi Jinping. The overnight decline extended from $113,000 to $110,000.
Fed Chair Jerome Powell downplayed the certainty of a rate cut in December during his press conference. This comment triggered the additional selling pressure.
JUST IN: 🇺🇸 Fed Chair Jerome Powell says December interest rate cut is "far" from certain. pic.twitter.com/IbTs0sVriM
— Watcher.Guru (@WatcherGuru) October 29, 2025
Trump announced that US tariffs on China would be lowered to 47% from 57%. He spoke about the agreement aboard Air Force One following the meeting in South Korea.
The president said it was a one-year agreement that would be extended. He also stated the rare earths issue has been settled with no more roadblocks.
BREAKING: President Trump announces China tariff reductions after "amazing" meeting with President Xi, including:
1. Reduced Fentanyl Tariffs to 10%, effective immediately
2. Overall tariffs on China reduced from 57% to 47%
3. China to "discuss" chip restrictions with Nvidia…
— The Kobeissi Letter (@KobeissiLetter) October 30, 2025
XRP and Dogecoin led losses among major cryptocurrencies with a 4% slide. Ether, Solana’s SOL, BNB and Cardano’s ADA showed losses as much as 3%.
The Fed’s dot plot currently shows a baseline of three cuts in 2025. Goldman Sachs analysts predict at least two more 0.25% rate cuts by March and June of 2026.
This would place the Fed’s benchmark rate in the 3% to 3.25% range. The lower rates signal the beginning of easier financial conditions.
Bitcoin and other non-yielding assets tend to benefit as liquidity returns to the market. Investors typically rotate out of cash-heavy positions into growth and alternative stores of value.
Ending balance sheet runoff on December 1 will reintroduce net liquidity to the system. This eases pressure on banks and improves market depth across risk assets.
Traders are now focused on factors beyond the rate cuts. Growing US job layoffs, the impact of Trump’s tariff policies, and questions about the artificial intelligence sector are all on investors’ minds.
Trump said he would be going to China in April. Xi would come to the US at some stage after that, according to comments carried by Reuters.
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TLDR Microsoft reported Q1 earnings of $3.72 per share on revenue of $77.7 billion, beating…
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