- Fed decisions cause Bitcoin drop, no consensus for rate cuts.
- Bitcoin falls below $89,000, triggering market sell-off.
- Fundamental shifts in investor stances follow Fed minutes.
In October 2025, the Federal Reserve’s minutes revealed internal disagreements and halted plans for further rate cuts, sparking a sharp decline in Bitcoin and major cryptocurrencies.
The decision impacted crypto markets significantly, leading to Bitcoin’s fall below $89,000, massive liquidations, and intensified volatility, reflecting the crypto market’s sensitivity to Fed policy changes.
The latest Federal Reserve minutes reveal a divided stance among policymakers, halting prospects for immediate rate cuts. Bitcoin’s rapid decline past $89,000, its lowest since April, reflects growing market concerns.
Jerome Powell, Federal Reserve Chair, oversees these significant policy deliberations. Under his leadership, the committee shows reluctance toward future monetary easing, without clear intentions for rate adjustments. FOMC Minutes from October 29, 2025 Meeting
The immediate market reaction saw over $112 million in Bitcoin long positions liquidated. This highlights the scale of investor positioning shifts triggered by the Fed’s current guidance.
Financial implications include substantial net outflows from institutional crypto funds as investors hedge against less favorable monetary policies. Market volatility intensifies, marked by increased risk aversion. “Committee participants remained focused on two-sided risks to the economic outlook and agreed that incoming data did not yet justify a clear path to additional rate cuts.” — Jerome Powell, Chair, Federal Reserve source
Bitcoin’s correlation to traditional equities reinforces its vulnerability to macroeconomic shifts. Investors adjust portfolios in anticipation of prolonged monetary tightening, as discussed in Economic Research from the Federal Reserve for 2025.
The historical trend of crypto experiencing volatility during restrictive Fed policies suggests potential future instability. Regulatory interest in digital asset oversight continues amid systemic risk conversations, as detailed in this Bitcoin Market Overview.
