The Fed Reserve rate cut for the second time in 2025, lowered its benchmark range to 3.75–4.0%. Bitcoin (BTC USD) price reacted.
BTC price was near $108,886 at the time of writing, down 1.47% over the previous 24 hours and 1.62% on the week, while losses for the month totaled 4.52%.
Bitcoin (BTC USD) Price Reacted to Second Fed Rate Cut
The decision came as inflation concerns lingered and official data coverage remained patchy. Policymakers eased financial conditions, and risk assets adjusted to the shift.
Spot sellers hit bids soon after the announcement. Bitcoin (BTC USD) price dip buyers later narrowed the loss. Yield moves filtered into digital assets through risk appetite and dollar flows.
Lower rates reduced funding costs and often increased demand for volatile holdings. Market depth thinned during the first hour after the decision.
Liquidity improved later as larger venues restored normal spreads. Fed Reserve communication also shaped expectations for future rate cut.
Traders weighed the path against inflation trends and growth risks. That backdrop set the tone for the session.
Bitcoin (BTC USD) tracked the broader move in risk indexes and then found balance near its current range. Equity futures swung during the policy window and then calmed.
The dollar eased in later trading, which supported risk conditions. The episode followed a familiar pattern around policy events.
Short-term volatility spiked, and prices found direction after the headlines faded. Liquidity often reset within hours, and volumes normalized later.
Bitcoin (BTC USD) Price Faces Resistance Near $110,000
Trading centered on a narrower area following the drop. The market treated $107,000–$108,000 as demand, with resistance emerging near $110,000.
A daily close above roughly $110,000 signals strong, making room for growth toward the $113,000 region.
Failure near that ceiling kept the range intact. Sellers then targeted a return toward $105,000–$107,000.
A loss of that band exposed a round-number magnet near $100,000. Round numbers often attract orders and produce sticky behavior.
Spot and perpetual markets stayed in sync during the rebound. That alignment suggested healthy flows rather than one-sided leverage.
Participants also waited for confirmation after any breakout. Many preferred a retest that held as support before extending higher.
What to Watch in Next Move
Liquidity pockets and positioning shaped the next catalysts. A large cluster of short positions still sat above $120,000, creating squeeze potential if sentiment improved.
If Bitcoin (BTC USD) price reached that region, forced liquidations could add momentum. On the downside, bulls needed to defend prior demand zones. A clean break could invite a larger retracement toward deeper supports.
Post-meeting patterns also deserved attention. Prior FOMC weeks often produced quick pullbacks followed by recoveries.
Traders monitored whether that rhythm continued after this cut. A similar path would have favored tests of higher resistance bands.
Macro conditions still mattered. Rate trajectory, growth signals, and the dollar path steered risk appetite.
Market participants used simple confirmation rules. They looked for closes above resistance and strong breadth before calling a breakout.
They also planned for noise around major releases. Thin liquidity during those windows increased slippage and false signals.
In short, the roadmap remained clear. Hold support, clear resistance, and avoid over-levered positioning.
The key barometers stayed the same. Investors watch for $110,000 on the upside and $107,000 on the downside.
Above the former, the path toward the $113,000 region opened for Bitcoin (BTC USD) price. Below the latter, the market risked a run toward $100,000.
As structure, liquidity, and policy continue to set the boundaries, these levels define risk and opportunity.
Source: https://www.thecoinrepublic.com/2025/10/31/fed-rate-cut-lands-what-it-means-for-bitcoin-btc-usd-price-as-data-gaps-hit/
