Key Takeaways
- The Fed’s 25 bps rate cut failed to spark a rally as Bitcoin slipped below $109,000.
- A U.S.–China trade deal brought brief optimism but couldn’t sustain momentum.
- Traders remain cautious as geopolitics overshadow macro tailwinds.
Bitcoin’s late-October performance was supposed to mark a turnaround.
The Federal Reserve delivered another quarter-point rate cut—its second this year—signaling relief for risk assets.
Instead, the crypto market slipped further, defying expectations.
On Oct. 29, Bitcoin (BTC) fell below $109,000 while Ethereum (ETH) dropped under $4,000, sealing what’s now the worst October in more than seven years.
The total crypto market shed about $100 billion, wiping away the optimism that had briefly lifted sentiment earlier in the day.
Despite a technically bullish backdrop—easing monetary policy, falling Treasury yields, and recovering equities— onlookers appear to be waiting on something bigger: the long-anticipated U.S.–China trade deal.
Fed Cut Overshadowed by Geopolitics
The Fed’s decision to lower its benchmark rate to 3.75%–4%, the lowest level in three years, was intended to stimulate growth and keep unemployment from climbing.
Yet instead of fueling a risk-on rally, the market recoiled.
Bitcoin dropped more than 3% after the announcement, as traders digested President Donald Trump’s renewed nuclear testing threats issued just hours before his scheduled summit with Chinese President Xi Jinping.
Under normal market conditions, a rate cut would have provided a boost to crypto prices.
However, it appears there is some reluctance in jumping back in until there’s clarity on U.S.–China relations—a reminder that global politics, not just Fed policy, is setting the tone for markets.
Trade Deal Brings Relief to Crypto Market—But Not Enough
The Trump–Xi meeting later in the day did offer a glimmer of hope.
Reports confirmed that both sides reached a one-year trade agreement centered on rare earths and critical minerals, alongside a partial rollback of tariffs.
According to White House statements, the U.S. agreed to:
- Reduce fentanyl-related tariffs to 10%
- Lower overall tariffs on Chinese goods from 57% to 47%
- Open discussions with China on easing semiconductor restrictions
In exchange, Beijing pledged to increase rare earth exports and revisit technology transfer rules.
The announcement briefly lifted crypto markets—Bitcoin jumped $2,000, bouncing from $108,000 to over $110,000 at press time.
Ethereum and other large caps followed suit, but the recovery soon faded as traders questioned the deal’s durability and the absence of concrete long-term commitments.
Crypto Market Braces for November
Historically, November tends to bring subdued trading volumes and mixed price action for crypto.
With the market nearing what many analysts believe is the tail end of its post-halving bull cycle, investors are showing restraint.
While institutional flows remain stable, retail traders appear hesitant—torn between the Fed’s dovish stance and renewed geopolitical risks.
For now, Bitcoin remains trapped below its critical resistance range, signaling that macro relief alone may not be enough to reignite risk appetite.
The Fed delivered its cut. Washington and Beijing found a temporary truce.
But crypto? Still waiting for conviction
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
