Bitcoin News Update: Halting QT Fails to Save Crypto as Federal Reserve Uncertainty and High Leverage Cause $150M in Liquidations

On October 30, 2025, Bitcoin and major altcoins saw further declines as leveraged trades were unwound in response to a significant shift in Federal Reserve policy and ongoing geopolitical events. Even though the Fed cut rates by 25 basis points and revealed that quantitative tightening (QT) would conclude in December—measures that usually favor risk assets—Bitcoin (BTC) slipped 0.68% to $109,295. Meanwhile,

(ETH), (SOL), and were all trading at levels more than 40% below their historical peaks, according to a . Experts pointed to profit-taking, evolving institutional approaches, and broader economic uncertainty as reasons for the downturn.

The Federal Reserve’s move to stop QT—a policy that had removed $900 billion from the financial system since 2022—initially sparked optimism among risk-seeking investors. However, markets quickly adjusted to expectations of a slower pace of rate reductions in 2026, especially after Fed Chair Jerome Powell warned that additional cuts "are not a foregone conclusion," as reported by an

. This uncertainty coincided with $150 million in crypto-long positions being liquidated within an hour, largely due to leveraged retail investors and algorithmic trading.

Institutional moves further intensified the market swings. Jump Crypto, a leading digital asset trading firm, carried out a $205 million over-the-counter transaction, exchanging 1.1 million Solana tokens for

, as detailed in a . The deal, arranged by , reflected a broader institutional trend of shifting portfolios toward perceived safer assets ahead of Bitcoin’s 2026 halving. At the same time, open interest in CME Group’s Solana and XRP futures reached a record $3 billion, highlighting rising institutional trust in regulated derivatives, according to a .

Altcoins faced more challenges as optimism from the Trump-Xi trade discussions failed to spark a lasting crypto rally. Although the U.S. and China agreed to lower tariffs and restart rare-earth exports, investors remained cautious due to persistent regulatory concerns and incomplete economic data stemming from the U.S. government shutdown, as noted by FXStreet. Solana and XRP, while holding near important support zones, continued to trade within a narrow range amid heightened short-term trading, according to a

.

Bitcoin’s technical setup remains uncertain. Traders are watching the $108,800–$110,200 range for intraday moves, with a breakout above $111,800 possibly setting the stage for a rally toward $118,000. Conversely, a drop below $107,500 could trigger a test of the crucial $105,000 support seen in 2024, according to Yahoo Finance. For altcoins, Ethereum’s ongoing struggle to reclaim the $3,900–$4,200 range underscores persistent difficulties in attracting steady buying, as highlighted in the same Yahoo Finance report.

Investors are now turning their attention to major macroeconomic events, such as the upcoming U.S. nonfarm payrolls data and the Fed’s December meeting. Meanwhile, institutional interest in crypto ETFs and regulated futures continues to influence liquidity, as noted by Coinotag.

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