Bitcoin News: Bitcoin Whiplash- Powell’s Caution vs.Trump-Xi Trade Optimism
Key takeaways:
- Bitcoin started trading today with a bearish trend, but now it signals a shift to bullishness.
- The bearish trend was triggered by the Fed’s ambiguous stand on December’s anticipated rate cut.
- The market turned bullish because of a diplomatic agreement between Trump and Xi Jinping to end the trade war.
- Market experts predict a bullish scenario for Bitcoin in December despite the rate cut ambiguity.
The US Federal Reserve cut its key interest rate by 25 basis points to a range of 3.75% to 4.00% on October 29, 2025, after its two-day policy meeting. While a rate cut is usually bullish for Bitcoin, the signaling of the Fed not to implement a further cut in December has caused a negative price reaction in the Bitcoin market.
The Bitcoin continued its downward movement when the US President Donald Trump and the Chinese President Xi Jinping initially refused to give an immediate press conference about their crucial meeting. However, the latter talk by the leaders reignited the optimism in the crypto market, with Bitcoin showing strong signs of a surge.
Powell’s Rate Cut Uncertainty Sparks Bitcoin Sell-Off
The Fed Chair Jerome Powell revealed in the post-meeting press conference that members of the committee have differing views about another rate cut in December, stating that a further cut is “not a foregone conclusion, far from it”.
Powell’s remarks caused immediate market reaction in both stocks and crypto, with Bitcoin falling 3% on the 24-hour chart. A rate cut in December was highly anticipated by the Bitcoin community because it would attract more traditional investors to Bitcoin, which would fuel the long-term bullishness of the asset.
Bitcoin Signals Quick Rebound As Trump and Xi Jinping Meeting Signal U.S.-China Co-Operation
Bitcoin today started signalling a strong rebound following U.S. President Donald Trump and Chinese President Xi Jinping’s agreement on reducing U.S. tariffs on Chinese imports from 25% to 15%. The meeting, held at the Asia-Pacific Economic Cooperation summit in South Korea, ensures a healthy relationship between the U.S. and China. “I think we’re going to have a fantastic relationship for a long period of time,” Trump emphasized in the meeting.
The trade war is finally over after months of conflict between the U.S. and China, and the co-operation signals economic growth for both countries, two of the largest governments to hold Bitcoin in their reserves. Additionally, the meeting resolved the rare earth minerals dispute, and Trump called it a great success. “All of the rare earth has been settled. That roadblock is gone now; there’s no roadblock at all on rare earths,” he said.
How Will Bitcoin Perform in December 2025? Price Prediction
Bitcoin analysts differ in their price forecast for December 2025, with bullish predictions arriving from prominent figures such as Michael Saylor ($150,000), Robert Kiyosaki ($200,000), Tom Lee ($250,000), and Matthew Sigel ($180,000). However, analysts and experts such as Peter L. Brandt and John Hawkins warn of a crash to $78,000 or $80,000. The price prediction, based on chart analysis and technicals, indicates that BTC will reach a maximum value of $131,202 in December, but it will likely surge to the ATH of $144,906 in November 2025.
| Month | Min. Price | Avg. Price | Max. Price | Change |
|---|---|---|---|---|
| Nov 2025 | $ 114,748 | $ 128,712 | $ 144,906 | 32.97% |
| Dec 2025 | $ 131,202 | $ 131,202 | $ 131,202 | 20.39% |
Bitcoin Price Outlook Today: Bearish to Neutral
- Fear & Greed Index: 51 (Neutral)
- Market Sentiment: Neutral
- Supply Inflation: 0.87% (Low)
- Dominance: 58.82%
- Volatility: 4.82% (Medium)
Bitcoin is exhibiting a resurgence from yesterday’s downtrend, trading above $110,000. While the December Fed rate cut uncertainty initially made it technically weak, now it is shifting towards a neutral trend. At present, Bitcoin’s Fibonacci resistance levels are at 117,187, 119,712, and 123,799. The Fibonacci support levels are at 109,014, 106,490, and 102,403.
