Bitcoin slides 3% to $110K post-Fed cut, $202M ETF inflows
Bitcoin fell about 3% to $110,000 after the US Federal Reserve cut interest rates by 25 basis points but signaled no guarantee of further easing. Traders executed a classic “sell the news” reaction following Chair Jerome Powell’s cautious remarks. Ethereum and other altcoins also slipped amid short-term bearish sentiment on prediction platforms, though long-term holders remain optimistic. Institutional investors poured $202 million into Bitcoin ETFs on October 28, lifting total ETF holdings to $62.3 billion and underscoring robust institutional demand. Technical indicators suggest mild selling pressure, with the daily RSI near 45, a weak ADX trend, and a four-hour death cross between the 50- and 200-period EMAs. Key support levels lie at $110,000 and $108,000, with deeper tests to $106,000 or $100,000 if selling intensifies. A clear break above $112,500 could shift momentum toward $117,000–$120,000. Traders should monitor these levels closely and maintain disciplined risk management.
Bearish
The combined news points to a bearish impact on Bitcoin. The immediate 3% drop reflects profit-taking following the Fed’s cautious stance, triggering short-term selling pressure. Technical indicators like the RSI near 45 and the four-hour death cross signal further downside risk, reinforcing bearish momentum. Although substantial ETF inflows underscore strong institutional demand, this support may provide only limited relief in the short term. In the long term, sustained inflows into Bitcoin ETFs and the potential for renewed rate-cut optimism could stabilize prices and set the stage for recovery. Traders should prepare for additional volatility and focus on key support levels around $110K and $108K while watching for a break above $112.5K to signal a shift in trend.