Bitcoin hovers around $110,000 after dropping 2.5%, despite a Fed rate cut and a U.S.-China trade truce. Fed Chair Powell’s cautious outlook dampened optimism, while Ethereum fell below $4,000 and Solana under $200. Bitcoin and Ethereum ETFs saw major outflows, signaling nervous markets as “Uptober” nears a disappointing close.
Bitcoin has found itself trading around $110,000 after two price-moving events, failing to maintain the cautious optimism from the start of the week. Altcoins like Ethereum and Solana are also down.
Many investors had envisioned a different outcome: Despite two generally positive macroeconomic developments, the Bitcoin price suffered a daily decline of around 2.5 percent. BTC even temporarily fell to $108,000 overnight before stabilizing at around $110,000 on Thursday morning. Ethereum and Solana also experienced losses. What happened?
The US Federal Reserve (Fed) cut its key interest rate by 0.25 percent, as predicted – generally a positive signal for Bitcoin, Ethereum, Solana, and other cryptocurrencies. However, Fed Chair Jerome Powell then addressed the press with some strong words regarding future prospects. A further interest rate cut in December is “by no means a given – quite the opposite,” Powell said, thus disappointing expectations. Lower interest rates typically lead to capital flows toward riskier asset classes like Bitcoin .
The meeting between US President Donald Trump and his Chinese counterpart Xi Jinping, while reportedly a resounding success by Trump himself, scoring “12 points out of 10,” is less clear-cut. The American camp claims that China has agreed to allow the export of rare earth elements again, with Washington promising to reduce tariffs in return.
However, Beijing has yet to confirm the details, and according to Trump, the agreement is merely for one year – more of a pause in the conflict than a solution, commentators argue. Bitcoin and other cryptocurrencies are currently unable to derive any positive momentum from these interim global political solutions.
Ethereum , meanwhile, fell by almost 3 percent on the day, dropping below the psychologically significant $4,000 mark, while Solana failed to defend the $200 level. Individual altcoins from the extended top group, such as Hyperliquid (HYPE) and Zcash (ZEC) , which had already developed momentum in recent weeks, provided some positive impetus.
Disappointment was also evident among Bitcoin ETFs, which suffered a capital outflow of $470 million on Wednesday. Ethereum ETFs simultaneously lost $81 million in invested capital.
Tomorrow, Friday, is the so-called “Uptober” settlement, when monthly futures contracts also expire. Bitcoin would need to climb above $114,000 to end October positively or at least neutrally – and is radiating more nervousness than optimism. This is affecting Ethereum and Solana, which are once again failing to decouple their price movements from Bitcoin. In the US, the government shutdown continues to dominate daily politics and fuels uncertainty. Difficult days for Bitcoin and popular altcoins like Ethereum and Solana.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in BLCOK-BUILDERS.DE. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
