Bitcoin’s Volatility Defies Fed Rate Cut Optimism
Despite the Federal Reserve's recent 25-basis-point rate cut—a move traditionally viewed as bullish for cryptocurrencies—Bitcoin experienced sharp price swings, leaving investors unsettled. The sustained drop in Bitcoin's value challenges conventional expectations about how monetary policy influences digital assets. Fed Chair Jerome Powell added to the uncertainty by cautioning that a December rate cut is "not a foregone conclusion," reflecting internal divisions within the central bank. This ambiguity has contributed to market volatility, as traders grapple with mixed signals about the future of monetary policy and its impact on crypto markets. As of November 2025, Bitcoin's price action remains highly reactive to macroeconomic developments, underscoring the asset's sensitivity to broader financial trends.
Bitcoin Faces Volatility Despite Fed’s Rate Decision
Bitcoin's price swung sharply downward after a brief rally, unsettling investors despite the Federal Reserve's 25-basis-point rate cut—a MOVE typically seen as bullish for crypto markets. The sustained drop challenges conventional wisdom on how monetary policy impacts digital assets.
Fed Chair Jerome Powell signaled caution on future cuts, stating a December reduction is "not a foregone conclusion." The ambiguity reflects internal divisions and broader economic uncertainties that may dampen crypto market optimism.
Institutional sentiment cooled as spot Bitcoin ETFs saw significant outflows, breaking a streak of steady inflows. The retreat suggests waning confidence among major players during this period of macroeconomic ambiguity.
Bitchat App Surges to Second-Most Downloaded in Jamaica Amid Hurricane Melissa
Bitchat, a decentralized messaging application developed by Jack Dorsey, became the second-most downloaded app in Jamaica as Hurricane Melissa ravaged the Caribbean. The storm, with winds reaching 185 mph, caused significant infrastructure damage and reduced internet connectivity to 30% of normal levels, highlighting the app's utility in crisis scenarios.
The app's Bluetooth mesh networking technology allows devices to relay messages without internet access, creating a resilient communication network during outages. Similar adoption spikes were observed in Nepal, Indonesia, Madagascar, and Côte d’Ivoire during previous internet disruptions and civil unrest.
Hurricane Melissa has claimed over 30 lives across the region, including 23 in Haiti alone, according to CNN. The disaster underscores the growing importance of decentralized technologies in emergency response and infrastructure resilience.
Bitcoin’s November Track Record: 8 Wins in 12 Years
November has historically been Bitcoin's strongest month, delivering positive returns in 8 of the last 12 years. The average gain stands at 46.02%, though this figure is skewed by an extraordinary 449.35% surge in November 2013. Excluding that outlier, the average return drops to a more modest 9.35%, with a median return of 10.82%.
Market turning points frequently occur in November and December, marking both cycle tops—like those in 2013, 2017, and 2021—and bottoms, such as 2018 and 2022. bitcoin currently hovers around $114,487, struggling to sustain momentum above $115,000 after a brief rally fueled by US-China trade optimism.
Analysts point to the Federal Reserve's upcoming rate decision as a pivotal factor that could determine whether Bitcoin breaks through its current resistance level. Traders are watching closely, as historical performance suggests November could once again prove decisive for the cryptocurrency.
Fed Cuts Rates by 25 Basis Points Amid Market Uncertainty
The Federal Reserve lowered interest rates by 0.25% during its October 29 FOMC meeting, marking the second consecutive easing move this year. The decision brought the benchmark rate to a target range of 3.75%-4%, following September's reduction that had buoyed both equities and cryptocurrencies.
Market sentiment turned sharply negative after Chair Jerome Powell cast doubt on future policy easing. Bitcoin plunged below $108,000 within hours, triggering over $825 million in liquidations across crypto derivatives. The selloff contrasted sharply with September's rate-cut rally, demonstrating Powell's outsized influence on speculative assets.
CME FedWatch Tool now prices a 70.4% probability of rates holding steady at December's meeting. This hawkish tilt arrives despite cooling inflation indicators, creating headwinds for risk assets entering 2026.
