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The crypto market went through another roller-coaster ride in the past 24 hours following the latest Federal Reserve meeting. Many traders expected Bitcoin to surge after the Fed’s decision, but instead, prices tumbled, wiping out over $300 million in leveraged positions within minutes.
The big event took place on Wednesday, October 29, when the Fed announced a 25-basis-point rate cut, its second cut of the year. While this move was widely anticipated, what followed surprised the markets. Bitcoin, which traders hoped would rally on the news, dropped sharply right after Fed Chair Jerome Powell’s speech.
Powell confirmed that the central bank will end its quantitative tightening program on December 1. That means the Fed will begin selling some of the assets it currently holds, which could drain liquidity from financial markets. This move typically puts pressure on risky assets like cryptocurrencies. Powell also mentioned that the ongoing government shutdown and rising tariffs are weighing on the economy, further shaking investor confidence.
The market reacted instantly. Within just 15 minutes of Powell’s remarks, over $300 million worth of leveraged crypto positions were liquidated. Adding to the tension, a separate meeting between President Trump and China’s President Xi also created uncertainty, triggering another wave of sell-offs across the market.
Bitcoin briefly fell to $108,000 before bouncing back to around $110,000. Despite the quick recovery, the overall trend remains bearish for now. On the 4-hour chart, Bitcoin has lost roughly 2.5% in the last day. Bulls managed to hold the key support level at $106,000 after the price slipped below $108K during the chaos. BTC has since reclaimed minor resistance at $108,900, which matches the 23.6% Fibonacci retracement level.
Technically, Bitcoin’s momentum looks weak. The Relative Strength Index (RSI) has dipped to 49, just below the neutral mark of 50, showing that buying power is fading. The MACD indicator also flipped negative, flashing a short-term sell signal.
Right now, Bitcoin is trading slightly above $110,800. If the daily candle closes above $110,700, it could open the door for a small recovery toward $112,200 or even $115,000. But if it fails to hold this level, the price might slide again toward $106,100 or even $103,500.
In short, while the Fed’s rate cut was supposed to bring relief, it instead triggered a fresh wave of fear across crypto markets. Traders are now watching closely to see if Bitcoin can hold its ground above $110K, or if another dip is on the way.