Fed Hold Sparks Bitcoin Selloff as ETF Inflows and Ethereum Bleed Deepen

Bitcoin slipped below $80,000 on October 29 as the Federal Reserve's October 28 decision to hold its benchmark rate at 3.75%,4% failed to reassure crypto traders. Two policymakers voted for another increase as inflation remained above the central bank's target. Bitcoin fell even as U.S. spot Bitcoin ETFs attracted more than $423 million over three consecutive trading sessions. Markets were still pricing roughly an 80% probability of a December hike following the meeting.

Total crypto derivatives open interest fell around 7.35% to $318.6 billion as leveraged positions were closed, while Bitcoin long liquidations jumped to roughly $51.96 million, an increase of more than 1,000% from the previous measurement period. The global crypto market capitalization stood at $2.77 trillion, down 1.3%. Higher rates strengthen the dollar and Treasury yields, making risk assets like Bitcoin and Ethereum less attractive.

Ethereum ETF Outflows Compound Pressure

Ethereum spot ETF funds recorded approximately $170.21 million in combined net outflows across three sessions, while Ethereum traded near $2,320 on October 29 after briefly falling to $2,300. Sentiment remains cautious with ETH down more than 10% over the past 30 days. Despite the latest decline, cryptocurrency analyst Michaël van de Poppe expressed optimism about Ethereum's recovery prospects.

A regulated perpetual-contracts venue added a structural note to the day's news. Trade.xyz announced a partnership with ICE, and following CFTC approval, the venture will establish a dedicated U.S. market offering 24/7 perpetual contracts powered by Hyperliquid, covering stocks, indices, commodities, forex, and crypto. ICE's strategic investment includes prominent figures such as Stan Druckenmiller. The move signals growing institutional appetite for around-the-clock derivatives access even as spot prices remain under pressure.