Bitcoin Dips to $110K as Traders ‘Sell the News’ on Fed Cut & U.S.-China Deal!

by

Markets

What to know:

  • The largest cryptocurrency’s retreat from $116,000 raises concerns of a lower high forming after its $126,000 record earlier this month.
  • Futures open interest rose to $27.2 billion despite the sell-off, and funding rates normalized, signaling calm sentiment and resilient positioning.
  • XRP and XLM led losses among majors, while TRUMP memecoin gained 6.8% on acquisition rumors, hinting at selective strength despite widespread declines.

Ah, the crypto world-where no good news ever goes unpunished. After the Fed decided to trim interest rates and a shiny new trade deal with China surfaced, what did traders do? You guessed it-they sold the news. Bitcoin took a nostalgic dive back to its $110,000 support level, and traders are now clutching their coffee cups, wondering whether the recent peak at $116,000 was merely a fleeting mirage before the market decides to pull a classic reverse. Will it be a lower high? Or will this be the start of a long and glorious downtrend? 🧐

Bitcoin dominance took a tiny tumble Thursday, dropping a few basis points to show that, despite the general gloom, some altcoins are still holding up better than BTC. Maybe there’s hope for them after all… 🙄

Derivatives Positioning

By Saksham Diwan

  • Despite yesterday’s post-Fed news price drop in bitcoin, the BTC futures market shows strength: Open interest (OI) has slightly increased to $27.2 billion, confirming minimal liquidations and quick buyer re-entry. (Those buyers… always coming back for more.)
  • Crucially, the highly polarized funding rates have normalized, now trending neutral and close-to-flat across most venues. It’s almost as if the market doesn’t care anymore. 😅
  • The BTC options market maintains a strong bullish lean, although short-term conviction has moderated. So, everyone’s bullish… but not too bullish? Classic crypto drama.
  • The implied volatility (IV) term structure still exhibits near-term backwardation before transitioning to long-term contango. One week later, and traders are paying a premium for short-term call options. Only in crypto, folks!
  • This reduced conviction is reflected in the 24-hour put-call volume ratio, which remains bullish at 55:44 in favor of calls. If the bulls are winning, why does it feel like a funeral?
  • Coinglass data shows $821 million in 24-hour liquidations, with a 79-21 split between longs and shorts. That’s a lot of money to liquidate in just a day. Feels like a Monday morning at a crypto exchange, doesn’t it?
  • BTC ($368 million), ETH ($188 million), and others ($52 million) were the leaders in terms of notional liquidations. Binance liquidation heatmap indicates $109,700 as a core liquidation level to monitor-because who doesn’t love a good liquidation watch party?

Token Talk

By Oliver Knight

  • More than $80 billion vanished from the total crypto market cap in the past 24 hours. All thanks to the “sell the news” reaction to the Fed’s interest-rate cut and the U.S.-China trade deal. Classic. 💸
  • Bitcoin and ether, the two big dogs, are both down 2.5%-you know, just a little dip, nothing to panic about. Meanwhile, XRP and XLM took the crown for worst performers, shedding 3.5% and 3.3%, respectively. Oof, sorry, guys.
  • Plasma continues to make headlines for all the wrong reasons, tumbling 14% in 24 hours. Not the glow-up Plasma was hoping for. 14% down is not a vibe. 🌑
  • One ray of sunshine in this gloomy market? TRUMP memecoin, of course. It shot up by 6.8% after rumors surfaced that Fight Fight Fight (the company behind the token) plans to acquire U.S. fundraising platform Republic. Because nothing says “solid investment” like a meme coin named after a reality TV star. 😂
  • TRUMP is up 45% this week, but at $8.40, it’s still a far cry from its record high of $45.47. But hey, it’s trending. Something’s gotta be good, right?
  • Bitcoin dominance dipped from 59.3% to 59.0%, suggesting that-against all odds-some altcoins are actually outperforming Bitcoin in this market massacre. 🎉

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2025-10-30 16:08