Bitcoin fell sharply after the Fed signaled limited further rate cuts and amid cautious market reaction to the Trump–Xi meeting, with ETFs seeing record daily outflows since mid-October.
Bitcoin dropped 3.8% to $108,572, briefly hitting $107,925, after the Federal Reserve’s second 2025 rate cut to 3.75%–4% was accompanied by Chair Jerome Powell’s warning that further easing this year is uncertain. Market expectations for a December cut fell from 90% to 71%, weighing on risk assets. The decline also followed mixed sentiment from the Trump–Xi meeting, despite announcements on soybean purchases and rare-earth agreements. U.S.-listed spot Bitcoin ETFs registered $470.7 million in outflows, the largest since October 16, ending a four-day inflow streak. The Fed is nearing the end of Quantitative Tightening by December, having reduced its balance sheet by nearly $1 trillion since 2022, but decisions remain data-dependent.