Bitcoin tumbles to $109.2K after Fed 0.25% rate cut and decision to end QT
30.10.2025
3845
Bitcoin price fell to $109,200 despite the Federal Reserve confirming a 0.25% interest rate cut and the end of quantitative tightening. Traders expect future rate cuts, so why is BTC falling?
Bitcoin tumbles to $109.2K after Fed 0.25% rate cut and decision to end QT
Bitcoin just got wrecked, dropping to $109,200 despite the Fed cutting rates by 25 basis points AND ending quantitative tightening. The irony? Everyone thought rate cuts were bullish for BTC. So what gives?
- • Bitcoin’s sell-off accelerated after the Federal Reserve cut rates by 25 basis points.
- • Weakness in crypto shows traders are looking at macroeconomic headwinds like a weakening jobs market and inflation, despite believing that interest rate cuts will continue into 2026.
BTC tanked to $109,200 ahead of Powell's announcement - a brutal 6% drop from Monday's rally to $116,400. This is way sharper than anyone expected, especially since the 25bp cut was basically guaranteed.
Here's the plot twist: The Fed's dot plot shows three cuts planned for 2025, and Goldman Sachs is already predicting at least two more cuts by March and June 2026. That would put the benchmark rate at 3% to 3.25%. So why's BTC moving opposite to expectations?
Recent history has shown that the FOMC leads to a price drop in BTC, followed by a move up. This was the case in both the no rate change and rate cut (last one) scenarios. If price does dip post-FOMC and signs of bullish confluence emerge, such as bid-heavy orderbooks, it would likely present good opportunities for investors.
The real story: traders have moved beyond 'when will they cut?' to 'what happens after the cuts?' They're watching US job layoffs, Trump's tariff war fallout, and whether the AI sector is in a real bubble or actually solid. These macro factors are driving price action more than today's already-priced-in cut.
All eyes are on Powell's FOMC presser for answers on these bigger questions. The real market movers won't be today's cut, but what he says about the economic outlook.
Biggest development: The Fed confirmed they're stopping balance sheet shrinkage on Dec 1 - quantitative tightening is officially over. This is huge for liquidity, but markets are still spooked by the bigger picture.
#FOMC#Quantitative Tightening#Macroeconomic factors#Cryptocurrency market#Federal Reserve System
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