After a week of mostly downward pressure, crypto markets saw a modest recovery on Friday, October 31, as Bitcoin (BTC) and Ethereum (ETH) bounced back from yesterday’s slump. Bitcoin traded around $109,225, up 1.7%, while Ethereum reclaimed the $3,826 level, gaining 1.55%. Major altcoins posted smaller gains, but overall market sentiment remains subdued.
Fed’s cautious stance weighs on market sentiment
Despite the Federal Reserve’s recent 25-basis-point rate cut, traders had largely anticipated the move, limiting its impact on crypto prices. Fed Chair Jerome Powell signaled a more cautious outlook on inflation, suggesting that this month’s cut could be the last for 2025. The cautious messaging tempered risk appetite across financial markets, including crypto, where investors remain wary of further downside.
ETF outflows signal continued investor caution
Spot crypto ETF outflows reached $600 million by Friday, reflecting a reassessment of risk by investors. The outflows underscore the ongoing low appetite for exposure to digital assets, despite the brief price rebound.
October proves challenging for Bitcoin
The modest recovery on Friday comes after a challenging month for Bitcoin. “Uptober,” the historical term for October rallies, failed to materialize, with BTC down roughly 15% from its October 6 all-time high and posting a 6.5% monthly decline. Friday’s uptick offers short-term relief, but the broader macro environment and investor caution continue to cap upside potential in the crypto market.
