Bitcoin fell below $107,000 on October 30, 2025, following remarks from Federal Reserve Chair Jerome Powell. This development significantly impacted Ethereum, XRP, and Dogecoin, leading to over $1 billion in cryptocurrency liquidations across the market.
Federal Reserve Chair Jerome Powell's comments introduced a wave of uncertainty into global financial markets, with a particularly pronounced effect on the cryptocurrency sector. Major digital assets experienced sharp declines as investors reassessed their risk positions in response to fluctuating monetary policy signals from the central bank.
Bitcoin's Plunge and Broader Market Reaction
On October 30, significant declines were observed not only in Bitcoin's price, which fell below $107,000, but also in Ethereum, XRP, and Dogecoin. This widespread market downturn was triggered by Federal Reserve Chair Jerome Powell's recent remarks and resulted in over $1 billion in crypto liquidations. Powell indicated differing policymaker views, suggesting a potential pause in interest rate cuts, a stance perceived as a hawkish shift that reverberated through global and crypto markets. In parallel, institutional investors withdrew $470.7 million from Bitcoin Exchange Traded Funds (ETFs).
The immediate consequence of these events was a broad market drop, with assets such as Ethereum experiencing a 6% decline. XRP and Dogecoin also hit new lows. Powell's statements and the actions of institutional investors underscored a cautious sentiment that is currently driving market movements. The financial implications were substantial, with $1.2 billion in liquidations signaling considerable market stress. Furthermore, increased outflows from spot ETFs and Decentralized Finance (DeFi) projects indicated a de-risking strategy by investors amidst prevailing economic concerns.
Historical market events, such as the crash experienced in March 2020, have demonstrated that periods of intense stress can be followed by swift recoveries, though these can also give way to prolonged uncertainty. The current market reaction aligns with past trends, suggesting a potential for a cautious recovery. Analysts are projecting that increased regulatory scrutiny may become a factor as markets adjust to these developments. Future outcomes could involve the implementation of tighter regulations and the establishment of more robust institutional frameworks. Analysts anticipate that cautious investor behavior may contribute to market stabilization, particularly if such behavior is supported by greater regulatory clarity.
“It’s typical for Bitcoin to revisit its 50-week moving average multiple times during bull market pullbacks, with the current level sitting around $103,000.” — @AltcoinDaily, Market Commentator