Bitcoin Updates Today: Bitcoin Reaches Critical Juncture: Can Fed Rate Reductions Ignite a Surge or Lead to Further Decline?

Bitcoin's value dropped below $110,000 this week as investors reacted to the Federal Reserve's 25 basis point interest rate reduction and the conclusion of quantitative tightening. These developments have heightened worries about broader economic challenges, even though more monetary easing is anticipated. On October 30, 2025, the cryptocurrency reached a low of $108,091, representing a 3.8% decrease within a single day,

The Federal Reserve lowered rates to a range of 3.75%-4.00% amid signs of easing inflation and slower economic expansion, yet Bitcoin's reaction was contrary to many forecasts. Although traders had anticipated the rate cut, the 6% slide from its recent high of $116,400, highlighted by Cointelegraph, points to deeper concerns about a softening labor market and persistent inflation threats. Crypto analytics provider Hyblock observed that after past FOMC-driven declines, rebounds have often followed, referencing similar occurrences after earlier rate reductions. Still, the current market lacks strong bullish drivers, and investors are now looking ahead to what might follow the Fed's latest moves.

Coinbase posted a third-quarter profit of $1.05 billion, according to TradingView, underscoring the digital asset sector's resilience, but Bitcoin's technical setup remains fragile. Analysts such as Josh Olszewicz have pinpointed a crucial support area between $105,400 and $103,800, warning that a fall below $100,000 could lead to more significant losses. At the same time, two short-term outcomes are being considered: a swift reversal after the FOMC meeting to retest $109,000-$110,000, or a pullback before the meeting that could pave the way for a rally toward $120,000,

Market indecision is further fueled by differing opinions on the Fed's direction for 2026. Goldman Sachs anticipates at least two more 25 basis point reductions by early 2026, but traders remain wary. Should the Fed take a dovish stance this week, it could revive "buy the dip" enthusiasm, while a more hawkish message from Chair Jerome Powell in his post-meeting comments might extend the current selloff.

With the Fed's policy decisions and economic indicators shaping short-term sentiment, Bitcoin's ability to reclaim major resistance levels—such as $126,000—will depend on overall risk appetite and how the Fed communicates its outlook. At present, the cryptocurrency is at a pivotal point near its $100,000 support, and the results will likely influence its direction through the remainder of 2025.