In a dramatic turn of events that echoes through the corridors of economic influence, the Federal Reserve made the bold decision to cut its benchmark interest rate by 25 basis points, settling it in a range of 3.75%-4%. This marks the second consecutive cut, a clear sign that policymakers are rallying to uplift a faltering labor market amid swirling economic uncertainties. The decision didn’t come easy, as the Federal Open Market Committee (FOMC) revealed a divided house with a contentious 10-2 vote. Governor Stephen Miran argued for a more aggressive 50-basis-point cut, while Kansas City Fed President Jeff Schmid firmly stood against any reduction at all.
What makes this all the more compelling is the backdrop of a federal government shutdown, which has increasingly limited access to vital economic data. Just hours before the Fed’s announcement, the Bank of Canada also opted for a reduced rate, cutting its own by 25 basis points to 2.25%. In the cryptocurrency markets, this news didn’t pass without an immediate reaction. A staggering $300 million was liquidated from Bitcoin and other crypto assets within a mere 15 minutes following Fed Chair Jerome Powell’s remarks.
JUST IN: $300,000,000 liquidated from the crypto market in the past 15 minutes as Fed Chair Jerome Powell delivers FOMC speech. pic.twitter.com/85VDQ3VgNO— Watcher.Guru (@WatcherGuru) October 29, 2025
Despite the initial plunge, Bitcoin managed to regain its footing, stabilizing above $112,000 as traders began to process the longer-term implications of the rate cut and the Fed’s announcement to end quantitative tightening on December 1.
It’s crucial to recognize that this decision was much more than just a routine monetary adjustment; it reveals the Fed’s growing concerns about the economic environment. The statement from the Fed acknowledged that “job gains have slowed” and that “risks to employment rose in recent months.” They characterized inflation as “elevated,” having moved upward since earlier in the year, signaling that the economy is on rocky ground.
Interestingly, the Fed’s recent halt of balance sheet reduction—after shedding more than $2 trillion in assets since 2022—demonstrates apprehensions regarding liquidity conditions in money markets, with the balance sheet dipping below $6.6 trillion for the first time in years. Chair Powell noted that a December rate cut remains “far” from a certainty, quelling any immediate expectations for further relief. Based on CME FedWatch data, investors are still leaning toward another quarter-point cut in the year’s final meeting, but skepticism looms large.
Powell: December interest rate cut is “far” from certain pic.twitter.com/DfkKfmbieh— Exec Sum (@exec_sum) October 29, 2025
The ongoing government shutdown is casting a long shadow over economic assessments, with feedback loops and data frozen in time. Currently, the Fed must make decisions referencing unemployment figures only “through August,” relying on outdated reports, such as September’s consumer price index, which reported a core inflation rate soaring 3% year-over-year, well above the Fed’s 2% target.
Amid this tumultuous backdrop, some Bitcoin optimists, like MicroStrategy Chairman Michael Saylor, continue to paint an encouraging picture. Saylor forecasts Bitcoin could ascend to $150,000 by year-end, an outlook echoed by equity analysts closely monitoring the Bitcoin landscape. Even more ambitiously, he believes Bitcoin might reach a staggering $1 million in the next 4 to 8 years, possibly ballooning to $20 million over two decades, assuming a robust annual growth rate of 30%.
JUST IN: Michael Saylor predicts Bitcoin will reach $150,000 by the end of this year. pic.twitter.com/ovPz5fMFLW— Watcher.Guru (@WatcherGuru) October 29, 2025
However, not everyone shares this unbridled optimism. Analyst Wilberforce Theophilus cautions that current market expectations largely factored in either no cut or a modest 25-basis-point reduction. He argues that substantial rallies would only be feasible with unexpected cuts of 50-75 basis points or a pivot from quantitative tightening to quantitative easing—shifts he believes are far more significant than the rate cut itself.
Farzam Ehsani, CEO of VALR, weighed in on Bitcoin’s rebound above $115,000, calling it more than just a fleeting relief rally. Instead, he noted that data shows whales—large wallets holding between 10,000 and 100,000 BTC—have accumulated over 45,000 BTC since October’s market plunge. Ehsani emphasized that if this upward movement is to sustain, it will rely heavily on macroeconomic policies and demand from the market, all while warning of resistance levels looming between $116,000 and $117,000. The potential targets for Bitcoin’s ascent by year-end could land between $126,000 and $130,000, but only if broader retail interest surges.
The technical landscape is also telling a complex story; Bitcoin’s price behavior around previous FOMC meetings has often resulted in declines of 6-8% in the days following announcements. As it stands, trading at $112,000-$113,000, Bitcoin is currently encountering immediate pressure from an unfilled CME futures gap between $111,000 and $113,000. Analysts suggest Bitcoin might need to correct downwards by about $1,000 to meet this gap-fill condition, a common trend when futures markets remain closed while spot trading persists.
$BTC CME GAP IS GETTING FILLED NOW. BITCOIN NEEDS TO GO DOWN $1,000 MORE TO FILL THIS COMPLETELY. DO NOT PANIC. pic.twitter.com/U9PMscrI1P— Max Crypto (@MaxCryptoxx) October 29, 2025
According to Elliott Wave analysis, Bitcoin’s recent movement suggests it may be operating within wave (ii) of a larger corrective pattern, predicting a possible decline toward the $110,000 range as part of this correction. Support zones have been identified around $104,000-$108,000 if selling pressure intensifies. For now, the likelihood of a near-term drop toward $110,000-$111,000 appears more probable than an immediate continuation higher. Nevertheless, should the market’s bullish conditions persist, and institutional buyers continue to accumulate, the longer-term outlook remains bright, with optimistic projections pointing towards Saylor’s intended target of $150,000 by year-end.
With the cryptocurrency markets entwined with traditional economic frameworks, all eyes are on the future. How will Bitcoin’s price respond to these current events? Will it soar past the predicted targets or face headwinds from macroeconomic conditions? The story is still unfolding, and only time will reveal the next chapters of this dynamic market.