Is This Final Bitcoin Price Correction Before US Shutdown Ends, Fed Rate Cuts?
Highlights
- BTC fell 3% to around $107,500 and top altcoins like ETH, SOL, XRP, and BNB dropped 3–5%.
- Despite the Bitcoin price pullback, on-chain data shows rising BTC outflows from Binance, indicating seller exhaustion.
- The U.S. government shutdown is expected to end this week, with Fed rate cuts anticipated next week.
Bitcoin price and the broader crypto market are facing yet another selling pressure today, triggering nearly $250 million in long liquidations. Top altcoins like Ethereum (ETH), Solana (SOL), XRP, BNB are also trading 3-5% down, even on the news that the US shutdown is likely to end soon. This could make way for all the policy decisions with the much-anticipated Fed rate cuts next week.
Bitcoin Price Corrects While the US Shutdown Ends Soon
Bitcoin is once again facing selling pressure, correcting 3% in the last 24 hours, and is currently trading at $107,500 levels. This selling pressure is visible across altcoins and the broader crypto market today, with overall crypto market liquidations soaring to $320 million, of which $250 million is in long liquidation.
However, on-chain data shows that the Bitcoin price downside could be limited from here as seller exhaustion is visible. Bitcoin outflows from Binance have surged sharply, signaling a shift in market sentiment.
Analysts note that such negative exchange flows typically indicate that investors are no longer looking to sell. Instead, they are moving their holdings into cold storage, suggesting renewed confidence.
Data over the past 30 days shows a clear trend of declining selling pressure. This shows that investors are steadily withdrawing BTC from exchanges and consolidating positions off-platform. Thus, the Bitcoin price downside could be limited from here onwards.
Crypto analyst Ted Pillows highlighted a sharp decline in the CBOE Volatility Index (VIX), noting it has dropped another 10% today and is now down 36% from last week’s peak. According to Pillows, the steep fall in VIX indicates fading fear and uncertainty. This could ultimately benefit Bitcoin and the broader crypto market.
US Shutdown Ending, Fed Rate Cuts Soon
The market reaction remains indecisive as macro uncertainty continues. On one hand, White House adviser Kevin Hassett said the ongoing U.S. government shutdown is likely to end this week. This development could help restart progress on pending cryptocurrency regulatory measures.
Prediction platform Polymarket now shows rising odds of an earlier resolution to the U.S. government shutdown. Over the past 24 hours, traders have shifted toward a quicker end, with November 5 currently seen as the most probable date for the shutdown to conclude.
However, on the other hand, Trump has threatened to impose a 155% tariff on China if the negotiations don’t proceed as expected. With the two biggest global economies engaged in a tariff war, the market remains at a crossroads.
All eyes will be on the Fed rate cuts expected next week. Market experts believe that there will be another 50 bps rate cut before the end of 2025.
- Aster Outpaces Lighter in Perp DEX Rankings as Wintermute Buys the Dip After Previous Dump
- Blockchain for Good Alliance and UNDP AltFinLab Launch Blockchain Impact Forum
- ‘Trump Insider Whale’ Increases Bitcoin Short As U.S. Counters China in New Australia Deal
- Trump Advisor Hints US Government Shutdown Could End This Week, Opening Door for XRP ETF Ruling
- Ethereum’s Vitalik Buterin Responds to Allegations of Excessive Control By ETH Inner Circle
- XRP Price Prediction Amid Evernorth’s $1B XRP Treasury Plan – Can XRP Hit $5?
- Ethereum Price Targets $8K Amid John Bollinger’s ‘W’ Bottom Signal and VanEck Staked ETF Filing
- Pi Coin Price Eyes 50% Upswing As AI-Powered App Studio Update Ignites Optimism
- Bitcoin Price Prediction as Gaussian Channel Turns Green Amid U.S.–China Trade Progress and Fed Rate Cut Hopes
- Solana Price Prediction: Analyst Notes Bearish Breakdown Amid Derivatives Slowdown
- Shiba Inu Price Eyes Recovery as Burn Rate Jumps 10,785% – Can SHIB Hit $0.000016?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
