Bitcoin Updates: Massive Whale Sell-Off and Federal Reserve Uncertainty Drive Bitcoin Price Down Under $110k

Bitcoin has dropped below $110,000, capping off a volatile week for digital assets as waning investor confidence, challenging macroeconomic conditions, and heavy selling from major holders have intensified the downward trend. This recent slide, coming after unsuccessful efforts to break through important resistance points, highlights the increasing unpredictability in a market already shaken by the Federal Reserve’s strict policy approach and ongoing global tensions, according to

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The sharp fall in Bitcoin’s value has been worsened by long-term holders (LTHs) cashing out profits, a group that has often contributed to excess supply. Blockchain data indicates that wallets linked to early investors, such as Owen Gunden’s 10,000 BTC stash, have been selling aggressively, moving more than 2,587 BTC—valued at $290 million—to exchanges like Kraken, as reported by

. This wave of selling, together with a $471 million withdrawal from spot ETFs on October 29, points to a shift in market sentiment, according to .

Broader economic issues have intensified the sell-off. Although the Federal Reserve’s rate cut in October was expected, it failed to spark the bullish momentum traders were looking for. Fed Chair Jerome Powell’s statement that a December rate cut is “not a certainty” has left investors uncertain, while the U.S. government shutdown has added to doubts about the reliability of economic indicators, as noted by

. At the same time, U.S.-China trade talks, which briefly raised hopes for easing tensions, did not provide meaningful support for risk assets like Bitcoin. Even with promises to resume soybean imports and address rare-earth issues, the overall economic environment remains a headwind, according to .

This price movement has also led to major liquidations. In the 24 hours after the Fed’s October meeting, over $1.1 billion in crypto derivatives were wiped out, with Bitcoin long positions making up $190 million of those losses, as reported by FXStreet. Bitcoin is now trading around $108,590, hovering just above the crucial $105,000 support level. Experts caution that unless the price can reclaim $110,000, further declines are possible, especially if large-scale withdrawals continue, as mentioned in the Yahoo report.

Meanwhile, the DeFi space has experienced a rise in buyback initiatives as projects look to steady their token prices. For example, Ether.fi DAO has suggested a $50 million ETHFI buyback, which would only be triggered if the token drops below $3. This approach, reflecting a wider trend among DeFi projects to use treasury assets for price stabilization, seeks to decrease available supply and boost investor trust. While these measures may offer some short-term relief, they stand in contrast to the broader challenges facing the crypto sector.

Bitcoin’s recovery will depend on several factors: ongoing accumulation by institutional investors, clarity on the Fed’s policy direction, and renewed optimism among both retail and large-scale holders. For now, the market remains delicately balanced, with each approach to $115,000 met by fresh selling—a cycle that has characterized much of 2024 and 2025, as highlighted in the Yahoo report.