Bitcoin’s tumble, altcoins follow: The rate cut paradox
On the last Thursday of October 2025, the digital markets faced a frigid chill, far removed from Halloween thrills. Central banks, ETF tremors, and unpredictable headline events loomed large. Traders, hold tight: here’s your cutting-edge pulse across crypto and Wall Street.
Fed’s rate cut triggers a crypto sell-off — not a rally
The Federal Reserve’s latest quarter-point rate cut — the second this year — rippled across both traditional and digital assets. However, instead of igniting Bitcoin and Ethereum, it triggered a wave of selling pressure. Bitcoin swooned, dragging altcoins down and painting price tickers red for hours.
- Bitcoin dropped swiftly after the announcement. Analysts say this could be a classic case of “buy the rumor, sell the news.” With the rate cut widely anticipated, it lacked a dovish forward signal.
- Ethereum followed suit, slipping below $4,200. Investors shifted capital into cash or sought safer assets amidst the ETF outflows.
Both Wall Street and the crypto arena now share a singular sentiment: uncertainty reigns. According to analysts, even major institutional players are reconsidering whether Bitcoin-backed credit is a wise portfolio addition, following S&P’s milestone rating for a Bitcoin treasury company.
Fed chair contenders endorse Bitcoin: Mining fever on Ethereum Classic
In a twist, every major Federal Reserve Chair candidate has expressed support for Bitcoin integration into the economy. This unexpected consensus has ignited a gold rush — but not exclusively on Bitcoin’s blockchain. Ethereum Classic (ETC) mining has surged, with hashrates rising sharply as miners seek new profits amid potential pro-Bitcoin monetary policies.
Beyond Bitcoin: Hot moves in the altcoin ecosphere
- Solana: Following the launch of the first Solana ETFs, predictions for SOL’s market cap have surged. Some analysts project a staggering $6 billion ETF inflow by year-end, even as Solana’s price flirts with the $200 breakout point, creating FOMO across social media.
- XRP: Interest in XRP is on the rise, driven by new mining and payment programs. Price forecasts are becoming increasingly ambitious as liquidity shifts from riskier to more “enterprise-ready” tokens.
- Zcash: The privacy coin Zcash hit a remarkable seven-year high at $370, hinting at institutional adoption and regulatory clarity breathing new life into privacy coins.
- Pi Network and Linea: Both faced abrupt rejections at key resistance levels, demonstrating the divided opinions among retail and institutional investors regarding their immediate future.
Stablecoins and geopolitics: Asia and Latin America deploy digital currency strategy
- Bank Indonesia disclosed plans for a national stablecoin, signalling a shift in traditional central banking’s view on programmable money as a means to enhance global competitiveness.
- Brazil’s central bank is hastening preparations for a government Bitcoin reserve, potentially paving the way for monetary reform in Latin America, especially given ongoing currency volatility.
Wall Street and Main Street: Partnerships, IPOs, and regulatory drama
- BNY Mellon and Securitize have teamed up to launch a tokenized fund backed by AAA-rated credit, highlighting a significant move towards mainstream blockchain finance.
- ConsenSys, known for Metamask, has enlisted Wall Street giants JPMorgan and Goldman Sachs for its forthcoming IPO, a decisive moment for both institutional DeFi and regulatory scrutiny.
- Mastercard is reportedly eyeing a $2 billion acquisition of Zerohash, placing a strategic bet on the infrastructure underpinning stablecoins and digital asset transfers.
Artificial intelligence: Blockchain’s new chess player — but still flawed
The intersection of AI and crypto is getting an upgrade. Start-up Avalon is building an AI-driven real-world asset marketplace on BNB Chain. Nevertheless, critics are raising concerns about AI’s ability to distinguish fact from noise, cautioning against the risks when machine-learning models drive critical decisions, trades, and even regulations that may blur the lines of truth.
Key trends for Volity’s watchlist
- ETF flows: Both Bitcoin and Ethereum ETFs have ended their four-day inflow streak; outflows indicate a search for new narratives and safer options.
- Mining sector transformation: The surge in ETC mining is a direct result of Fed signals and regulatory support.
- Tokenization of traditional assets: Players like BNY Mellon and Securitize are betting on the transition of traditional bonds into digitised tokens, a trend poised to accelerate as rates diverge globally.
- Stablecoin geopolitics: Central banks are transitioning from pilot schemes to launching national stablecoins, significantly impacting cross-border payments.
- AI-powered trading and infrastructure: The popularity of decentralized AI platforms on TON and Hedera is rising, though glaring blind spots in machine judgment remain a concern.
And finally: Volity’s flyby for the day
- SpaceX discreetly transferred another 281 BTC among its wallets, igniting speculation on corporate treasury strategies in an evolving digital asset landscape.
- Memecoins made headlines again, with Ethereum founder Vitalik Buterin offloading for $14,000, reminding us that opportunistic profit-taking knows no bounds.
Today’s drama: A central bank plot twist, wild altcoin swings, and institutions laying the groundwork for tokenised credit. In this landscape, every day feels like an opening night.
