Bitcoin plunged past 110,000 in the middle of the night! More than 130,000 investors liquidated their positions, and the Fed’s movements became the focus

Nakamoto 2025-10-31 17:15 27797人围观 BTC

A late-night shower swept through the cryptocurrency market. Bitcoin once again experienced a sharp correction in late October, once falling below the $110,000 mark. The Federal Reserve's interest rate meeting was originally highly anticipated by the mark

A late-night shower swept the cryptocurrency market. Bitcoin once again experienced a sharp correction in late October, once falling below the US$110,000 mark.

The Federal Reserve's interest rate meeting was originally highly anticipated by the market, but it became the last straw for Bitcoin. From October 29th to 30th, Beijing time, the price of Bitcoin fell for the fourth consecutive day, falling from a high of $115,000 all the way below the important psychological mark of $110,000, and hitting the lowest level of $108,000.

The total amount of liquidated positions in the cryptocurrency contract market on the entire network reached US$591 million within 24 hours, and more than 130,000 investors were heartbroken in this late-night plunge. This plunge once again reminded investors that even in the seemingly independent system of cryptocurrency, the macro wind direction of traditional finance still firmly controls the pulse of the market.

01 Record of plunge

This autumn does not seem to be peaceful for the cryptocurrency market. In the last week of October, the price of Bitcoin continued to fall, falling from around $115,000.

As of press time on October 30, the price of Bitcoin has fallen to $110,500, a single-day drop of 1.61%.

This plunge is not an isolated incident. Ethereum also fell 2.45% to $3882, and XRP also fell more than 2%. The entire cryptocurrency market was shrouded in pessimism, with the total market value shrinking to $3.68 trillion, hitting a weekly low.

Market panic has increased sharply, and the fear and greed index has deteriorated sharply from 51 (neutral) the previous day to 34, clearly showing that the market has entered the "fear" zone.

02 The Fed’s “hawkish interest rate cut””

On the surface, the Fed's 25 basis point interest rate cut is in line with market expectations. This is also the fifth interest rate cut since September 2024. So why would a rate cut that was fully priced in by the market trigger such dramatic market turmoil?

The key to the problem is not the interest rate cut itself, but the statement made by Fed Chairman Powell at the subsequent press conference. Powell made it clear that a rate cut in December was "far from a foregone conclusion."

He further explained that due to the possible shutdown of the federal government, access to economic data will be affected, and the Fed may need to take a more cautious approach in the absence of data.

This statement completely changed the market's expectations for the Fed's future monetary policy path. According to CME's "Fed Watch" tool, the probability of the Fed cutting interest rates by 25 basis points in December has dropped from 90% to 67.8%, while the probability of keeping interest rates unchanged is 32.2%.

This "hawkish interest rate cut" stance - that is, although it cuts interest rates now but has reservations about future rate cuts - has disappointed the market.

03 Withdrawal of institutional funds

While the Federal Reserve is signaling caution, institutional investors are also quietly retreating. Data shows that the Bitcoin ETF market suffered massive capital outflows at the end of October.

On October 29, the net outflow of the U.S. Bitcoin ETF was as high as US$470.71 million. Fidelity FBTC, Ark & 21Shares and BlackRock IBIT experienced net outflows of US$164.36 million, US$143.8 million and US$88.08 million respectively.

Of particular concern is that BlackRock's IBIT had a net outflow of $100.7 million on October 21. According to the trust’s prospectus, the cash redemption mechanism requires it to sell Bitcoin on the day of net outflow to raise the cash required for redemption.

The ebb in institutional demand is not only reflected in the ETF market. Data shows that long-term Bitcoin holders (those investors who have held Bitcoin for more than 6 months) sold a whopping 325,000 Bitcoins in October, worth approximately US$35 billion based on an average price of US$110,000.

It was the steepest monthly drop since July and suggests even the staunchest holders are starting to waver.

04 Technical analysis perspective

From a technical analysis perspective, Bitcoin’s current decline is not without trace. After retreating from an all-time high of $126,200 to a low of $74,600, Bitcoin’s recent rebound has faced strong resistance near $114,500.

This position is not only the 50-day simple moving average, but also the 23.6% Fibonacci retracement of the aforementioned decline.

Adding to the worry for bulls, Bitcoin price has fallen below its multi-month uptrend line and tested key support at the 200-day moving average near $109,000. If this support fails, the next level of support will be $107,000 (38.2% Fibonacci level), followed by $103,500 (October low) and even the psychological $100,000 mark.

The Relative Strength Index (RSI) also shows Bitcoin is in a weak position, with the indicator falling below the 50 midline, indicating that seller power is taking over.

05 Global risk aversion increases

In addition to the Fed's policy shift, geopolitical factors also cast a shadow on the market. In late October, President Trump threatened to impose an additional 100% tariff on goods from China on top of the 30% tariff already in effect.

This statement triggered concerns in global markets about escalating trade tensions, and U.S. stocks suffered their biggest one-day plunge in months.

The Nasdaq Composite fell 3.56% and the S&P 500 closed down 2.71%, marking its largest one-day percentage drop since April 10. This risk aversion quickly spread to the cryptocurrency market, adding to the selling pressure on Bitcoin.

06 Market Prospects

Despite the short-term challenges, some analysts remain cautiously optimistic about Bitcoin's mid- to long-term trends. Judging from historical performance, November is usually a stronger month for Bitcoin.

The Federal Reserve plans to end its quantitative tightening policy from December 1. This shift may provide more liquidity to the market in the long term and support risk assets such as Bitcoin.

Once the market digests the Fed's hawkish signal, Bitcoin is likely to retest the $115,000 resistance level.

However, the future trend of Bitcoin still largely depends on the flow of institutional funds and macro policy trends. If the Fed unexpectedly cuts interest rates again in December, or if geopolitical tensions ease, market sentiment could improve quickly.

Looking ahead to November, historical data shows this is typically a strong month for Bitcoin. With the Federal Reserve planning to end quantitative tightening from December 1, market liquidity is expected to improve, which may provide impetus for Bitcoin to return to the $115,000 mark.

Markets always swing between fear and greed. When panic grips the market, those investors who remain calm often seize the best opportunities.