Bitcoin Price Slips Below $106K as Fed Rate Cut Doubts Kill ‘Uptober’ Momentum

Bitcoin’s price has dropped to around $106,000, erasing October’s bullish hopes and ending a seven-year streak of gains known as “Uptober.” The decline began with a flash crash in early October and intensified after Federal Reserve Chair Jerome Powell signaled that a December rate cut was “far from guaranteed.” That statement triggered a wave of selling across risk assets, including crypto, as traders recalibrated expectations for monetary easing.

The shift in sentiment was compounded by cautious ETF flows and macroeconomic headwinds. Spot Bitcoin ETFs saw four consecutive days of outflows, totaling $1.3 billion, while Ethereum ETFs lost nearly $500 million. Technical indicators like the Chaikin Money Flow confirmed sustained capital flight, suggesting investors are exiting rather than accumulating positions.

Despite the downturn, some analysts believe Bitcoin may find support near $104,000, a level that previously acted as a demand zone. But with the fear and greed index turning bearish and long-term holders beginning to sell, the market remains fragile.

Bitcoin extended its decline Thursday, falling below $107,000 and erasing more than 6% of its value this month 15% off its October 6 peak. Altcoins like Ethereum and Solana dropped even harder, each losing around 10% in October, dashing hopes for a bullish close to the month.

The downturn reflects growing investor unease over the Federal Reserve’s monetary stance. After Chair Jerome Powell said a December rate cut was “far from” guaranteed, traders pulled back from risk assets, triggering a wave of selling across crypto markets.

That shift in sentiment was visible in ETF flows. According to Bitget COO Vugar Usi Zade, U.S.-listed Bitcoin and Ethereum ETFs including Fidelity’s FBTC and ARK’s ARKB saw $550 million in outflows by October 29, signaling heightened investor caution.

Thursday’s sharp decline in Bitcoin and other cryptocurrencies alongside falling U.S. stocks undermines the narrative that digital assets can act as a reliable hedge against equity market volatility. Instead of offering protection, Bitcoin’s drop below $107,000 reinforced its correlation with broader risk-off sentiment, especially as traders reacted to uncertainty around Federal Reserve rate cuts.

The synchronized sell-off suggests that investors are treating crypto less like digital gold and more like high-beta assets vulnerable to macro shocks. As a result, Bitcoin’s reputation as a “safe haven” asset continues to erode under pressure from real-world market dynamics.

The crypto market’s October 10 flash crash dubbed “Black Friday” wiped out over $19 billion in positions, setting off a wave of volatility that’s still rippling through digital asset stocks. In the weeks that followed, several digital asset treasury companies (DATCOs) began liquidating their crypto holdings, despite having acquired them only months earlier.

ETHZilla (ETHZ), a former biotech firm turned ether accumulator, disclosed Monday that it sold $40 million worth of ether to fund share buybacks. The company’s CEO said the move was aimed at reducing outstanding shares and narrowing the gap between its stock price and the net asset value of its crypto reserves.

Meanwhile, shares of prominent DATCOs like BitMine Immersion Technologies (BMNR), Eightco Holdings (ORBS), and SharpLink Gaming (SBET) have plunged more than 70% from their highs. As these stocks began trading below the value of their crypto holdings, concerns mounted that forced treasury liquidations could trigger broader selling. Still, according to Bitget’s Vugar Usi Zade, there’s no clear evidence that DATCO weakness alone sparked the recent market-wide selloff.