Bitcoin Updates: Uncertainty Over Fed Rate Cuts Triggers Crypto Market Selloff, Bitcoin Drops by 5%

Bitcoin slipped below $110,000 on Wednesday after Federal Reserve Chair Jerome Powell's hawkish tone during the post-meeting press conference unsettled investors, as reported by

. The Fed lowered its key interest rate by 25 basis points to a range of 3.75%-4.0%, but Powell emphasized that a rate cut in December is "by no means guaranteed," causing risk assets to tumble. The yield on the 10-year Treasury note jumped 8 basis points to 4.06%, the dollar gained strength, and Bitcoin plunged nearly 5% within a day. The probability of a December rate cut has dropped to 69%, a steep decline from the 90% priced in before Powell's comments. Experts caution that the ongoing government shutdown and lack of economic data have heightened uncertainty, suggesting crypto markets may stay turbulent through the end of the year.

The downturn also hit exchange-traded funds (ETFs), with

spot ETFs breaking a four-day streak of inflows and recording $470.7 million in net outflows, according to . Fidelity's FBTC and 21Shares' ARKB saw the largest withdrawals, losing $164.36 million and $143.8 million, respectively. ETFs also reversed direction, with $81.44 million in outflows on October 29, as reported by . The broader crypto sector followed suit, with ETH falling below $4,000 as bullish momentum faded.

Historically, ETF inflows have indicated rising demand, but the current market tells a different story. Glassnode pointed out that the recent net outflows coincide with market lows and a drop in sentiment, according to

. In contrast, BlackRock's was the only Ethereum ETF to attract new funds, bringing in $21.36 million. Analysts attribute the withdrawals to profit-taking, cautious positioning ahead of Powell's remarks, and uncertainty about the Fed's next moves.

Geopolitical risks further unsettled markets. The U.S.-China trade summit between Donald Trump and Xi Jinping ended with assurances of a "trade deal soon," but Asian markets were mixed, according to

. The Shanghai Composite dropped 0.73% as investors weighed the lack of specifics on AI chip talks and fentanyl tariffs, as noted by . Japan's Nikkei 225 managed a record close even as the Bank of Japan kept rates unchanged, with analysts anticipating a hike in December, according to .

The Fed's unclear policy direction and global tensions have created a choppy market environment. Although Bitcoin ETFs still account for 7.3% of total supply, cumulative net inflows have fallen to $61 billion, and assets under management now total $149 billion, according to

. Michael Saylor of MicroStrategy remains optimistic, predicting Bitcoin could reach $150,000 by 2025, but most traders are adopting a more cautious approach.