Main Highlights
- Bitcoin (BTC) has fallen to the lower end of its recent trading range, approaching $107,000, following a US Federal Reserve interest rate cut
- Significant liquidations have occurred, with traders betting on price increases facing substantial losses, nearing $1 billion in 24 hours
- Analysts suggest that a sharp downturn in stock markets could lead to a Bitcoin price drop of up to 30%
- Market sentiment is divided, with some expecting a continuation of the current range-bound trading and others anticipating a significant price decline if major stock indices reverse
Bitcoin Price Tests Range Floor Amid Market Uncertainty
Bitcoin (BTC) experienced a decline to new weekly lows during Thursday’s Wall Street trading session, as stock markets showed little positive reaction to prevailing macroeconomic factors. Data from Cointelegraph Markets Pro and TradingView indicated that the price of Bitcoin briefly dipped to approximately $107,000. This level is considered a critical support zone, representing the bottom of its recent trading range, which was a key area for bullish investors to defend.
The cryptocurrency market, including Bitcoin, experienced a downturn that mirrored moves in the US stock markets. This occurred shortly after the US Federal Reserve announced a 0.25% interest rate cut the previous day. A potentially significant macroeconomic event, the anticipated trade deal between the US and China aimed at averting new tariffs scheduled for November 1, remained uncertain despite optimistic remarks from President Donald Trump. In a post on Truth Social, Trump stated following a meeting with Chinese President Xi Jinping that they had agreed on many things and that many of high importance were very close to resolved.
Market Reaction and Trader Sentiment
The S&P 500 and Nasdaq Composite Index both opened lower on Thursday. In contrast, gold prices saw an increase, climbing back above $4,000 per ounce. The cryptocurrency market was marked by substantial liquidations as traders’ macroeconomic positions unwound. Monitoring resource CoinGlass reported that 24-hour liquidations exceeded $1.1 billion at the time of reporting.
Market participants shared varied perspectives on the current outlook for Bitcoin. Some traders, like CrypNuevo, observed that Bitcoin’s behavior was typical around Federal Reserve meetings. CrypNuevo commented on X, stating, Nothing to worry about in terms of market structure or trend – price is now retracing the new imbalances created this evening. He also noted that Bitcoin had filled its latest weekend gap in the CME Group’s Bitcoin futures market.
Conversely, other analysts held a more cautious view. Trader Roman warned that Bitcoin’s failure to mirror stock market gains during periods of upward movement might indicate a significant downside risk if stocks experience a reversal. Roman suggested on X that a correction in the S&P 500 could trigger a 20-30% drop in Bitcoin, highlighting its sideways movement while stocks have seen substantial gains, indicating a lack of strength.
October’s Performance and Future Outlook
CoinGlass data indicated that October 2025 was poised to be a red month for Bitcoin, marking the first such occurrence since 2018, with only one trading day remaining. Historically, October has been a strong month for Bitcoin, with an average gain of 20% since 2013, as previously reported by Cointelegraph.
Expert Summary
Bitcoin’s price has fallen to the lower boundary of its current trading range, near $107,000, in the wake of the Federal Reserve’s interest rate decision. This has led to widespread liquidations for traders expecting price increases. While some analysts believe Bitcoin may continue to trade within its established range, others warn of a potential significant downturn if the broader stock market experiences a reversal.