Bitcoin falls below $108K as fading rate-cut hopes weigh on markets

Bitcoin slipped under the $108,000 mark after investor confidence in another Federal Reserve rate cut weakened. The move reflects a cooling macro narrative that’s pressuring both risk assets and crypto markets — and reignites the question: Is Bitcoin still a hedge, or just another risk play?

Macroeconomic Context: The Fed Strikes a Cautious Tone

Recent comments from Federal Reserve Chair Jerome Powell dampened expectations for immediate rate relief. Powell noted that inflation progress remains “uneven,” implying that the next policy move will depend heavily on incoming data rather than a preset dovish path.

As traditional markets recalibrate, traders have started to unwind leveraged positions built on aggressive rate-cut bets — spilling over into crypto.

“When liquidity expectations shrink, crypto feels it first.”
— BTCNews.space Market Analysis, November 2025

This shift reinforces that Bitcoin’s performance is now tightly linked to global liquidity cycles — a pattern we’ve seen since institutional adoption accelerated after 2023.

Technical Setup: Support and Resistance Levels

Analysts from ITB Forex Broker report that buyer momentum has weakened near the $110K level. The next key support sits around $106,000, which aligns with the previous accumulation zone.

• Immediate resistance: ~$110,800 – $112,000
• Major support: ~$106,000
• Neutral zone: $107,200 – $108,400

A decisive daily close below $106K could invite further selling toward the $102K–$104K range. Conversely, a strong rebound with rising open interest could signal consolidation before the next leg upward.

“This isn’t panic selling — it’s macro re-pricing,” says analyst M. Alvarez of ITB.

Institutional Flow: Liquidity Signals Cooling Demand

On-chain data from CryptoQuant shows a mild uptick in exchange inflows, suggesting that traders are de-risking after October’s ETF inflow boom.
Meanwhile, derivatives markets reflect a flattening funding rate — a sign of reduced long-side enthusiasm among institutional players.

The cooling momentum supports the thesis that Bitcoin’s current correction is more of a liquidity adjustment than a breakdown in fundamentals.
Similar periods in 2023 and 2024 preceded medium-term rallies once macro visibility improved.

Market Sentiment: From “Digital Gold” to “Macro Risk Asset”?

For months, Bitcoin has traded in correlation with major equity indices, undermining its “digital gold” narrative. As Treasury yields rise and dollar strength returns, investors temporarily rotate into safer assets.

Yet historically, each macro reset has served as a foundation for the next institutional accumulation phase.
If inflation moderates and rate-cut expectations stabilize by Q1 2026, Bitcoin could regain its hedge appeal — especially amid ETF inflows and sovereign adoption narratives.

Long-Term Outlook: Correction or Pause?

Strategists remain divided:

• Bearish view: Momentum exhaustion and declining liquidity could extend consolidation to the $100K range.
• Bullish view: On-chain resilience and ETF demand from institutions such as BlackRock may limit downside risks.

Ultimately, Bitcoin’s trajectory depends on how quickly the Federal Reserve transitions from “wait-and-see” to “easing.”
Until then, sideways action may dominate — offering accumulation opportunities for long-term holders.

Conclusion

Bitcoin’s drop below $108K isn’t just a chart event — it’s a sentiment reset.
As macro conditions shift, the crypto market continues to prove that liquidity, not emotion, drives price. Whether this moment becomes a short-term pullback or a deeper correction will depend on the Fed’s next move — and on how institutional capital positions itself in the weeks ahead.

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