Bitcoin Plummets After Federal Reserve Rate Cut Sparks Market Volatility

The Federal Reserve’s recent 25 basis point rate cut has triggered a ripple effect in the financial markets, with Bitcoin experiencing a notable price decline following the announcement. The decision, made at the Federal Reserve’s October 2025 meeting, has impacted Bitcoin, which fell to $111,700 as investors reacted to the change in economic policy. This move highlights the sensitive relationship between central bank actions and cryptocurrency markets, particularly with ETFs pulling out investments from the crypto space. 3% down on the day, the drop is a clear demonstration of how even seemingly small shifts in financial policy can have significant consequences for asset prices. However, the impact of this rate cut was not universal. While Bitcoin experienced a 3% decline, the Nasdaq saw more modest gains, suggesting that other sectors were less impacted by the Federal Reserve’s decision. 2025 has brought a wave of uncertainty and volatility in financial markets as investors grapple with both short-term market movements and long-term impacts on the cryptocurrency space.