Bitcoin’s Unexpected Downturn Amid Federal Reserve Policy Shifts

Despite the Federal Reserve's recent 25 basis point rate cut, Bitcoin experienced a surprising 6% decline from its recent peak of $116,000, highlighting the cryptocurrency market's complex relationship with traditional monetary policy. The Fed's anticipated 'soft pivot' failed to generate the expected bullish momentum as market participants demonstrated skepticism toward the long-term efficacy of the central bank's approach. Current projections from the Fed's DOT plot indicate three additional rate cuts throughout 2025, with Goldman Sachs forecasting two further reductions by mid-2026 that could potentially lower the federal funds rate to the 3.0-3.25% range. This disconnect between conventional monetary easing and Bitcoin's price action underscores the evolving dynamics of cryptocurrency markets, where short-term expectations often clash with longer-term macroeconomic narratives. The market's tempered response suggests traders are weighing multiple factors beyond immediate rate adjustments, including global economic conditions, regulatory developments, and institutional adoption patterns. As Bitcoin continues to mature as an asset class, its reactions to traditional financial stimuli are becoming increasingly nuanced, reflecting both its unique characteristics and its growing integration within the broader financial ecosystem. This episode serves as a reminder that cryptocurrency markets, while influenced by conventional monetary policy, maintain distinct drivers that can sometimes produce counterintuitive price movements relative to traditional asset classes.

Bitcoin Tanks Despite the Fed’s “Soft Pivot”: Why the Market Isn’t Buying the Rate Cuts

The Federal Reserve’s 25 basis point rate cut failed to ignite bullish momentum in Bitcoin, which dropped 6% from its recent high of $116,000. While the market had priced in the short-term cut, traders remain skeptical of the long-term outlook. The Fed’s DOT plot projects three additional cuts in 2025, with Goldman Sachs forecasting two more by mid-2026, potentially lowering the federal funds rate to 3.0–3.25%. Yet, Bitcoin’s decline to $107,000 suggests investors see these moves as damage control rather than a bullish pivot.

The end of quantitative tightening (QT) on December 1 marks a shift in liquidity dynamics, but the market isn’t interpreting it as a return to easy money. Softening job data, rising layoffs, and stubborn inflation have raised concerns that the Fed’s actions are reactive rather than proactive. Crypto, as a leading indicator of macro sentiment, is already pricing in recession risks, with traders questioning whether rate cuts signal economic weakness rather than optimism.

Nordea Bank to Offer Bitcoin ETPs to Customers Starting December 2025

Nordea, the largest bank in the Nordic region, will begin offering Bitcoin exchange-traded products (ETPs) to its customers in December 2025. The move reflects growing institutional confidence in cryptocurrency markets amid a maturing regulatory landscape in Europe.

The Helsinki-based lender cited improved investor protections and regulatory clarity as key factors in its decision. Nordea's initial offering will feature a synthetic bitcoin ETP from CoinShares, a European digital asset manager overseeing more than $10 billion in assets.

This strategic expansion into crypto-linked products comes after years of cautious observation by the bank. Nordea had previously maintained distance from digital assets due to concerns about market volatility and lack of oversight.

Core Scientific Shareholders Reject $9 Billion Merger with CoreWeave

Bitcoin miner Core Scientific's shareholders have voted against a proposed $9 billion all-stock merger with AI computing firm CoreWeave. The deal, which WOULD have combined high-power computing infrastructure with digital asset mining, failed to secure sufficient shareholder support during a special meeting.

CoreWeave's Nasdaq-listed shares dipped nearly 4% following the announcement, while Core Scientific's stock saw a marginal 0.3% gain. The rejection highlights the diverging priorities between traditional AI infrastructure investors and Bitcoin mining stakeholders.

The collapsed deal represents a significant moment for the intersection of AI and cryptocurrency infrastructure. CORE Scientific remains a key player in Bitcoin mining and high-density colocation services, while CoreWeave continues its focus on GPU-accelerated cloud computing for AI workloads.

Germany's AfD Proposes Bitcoin as Strategic Asset Amid EU Regulation Debate

Germany's Alternative for Germany (AfD) party has filed a motion to classify Bitcoin as a strategic asset, challenging the EU's Markets in Crypto-Assets (MiCA) regulations. The proposal aims to position Bitcoin as a cornerstone of Germany's financial innovation and digital sovereignty.

The AfD's initiative argues that Bitcoin's decentralized and limited nature warrants exemption from MiCA's stringent rules. The party warns that overregulation could stifle capital flows and technological advancement, undermining Germany's competitiveness in the digital economy.

Key recommendations include maintaining a 12-month tax-free holding period for Bitcoin and classifying private mining and lightning node operations as non-commercial activities. The motion frames Bitcoin as a FORM of digital money aligned with modern economic needs.

Soaring Bitcoin ETF Inflows: $839M Amid Gold’s Slump

Investors are pivoting from gold to Bitcoin as the precious metal tumbles below $4,000. US-listed Bitcoin ETFs have absorbed $839 million in net inflows since October 20, while gold ETFs bled $4.1 billion. The divergence underscores a growing appetite for crypto exposure.

Bitcoin’s 6.7% weekly gain contrasts sharply with gold’s 10% plunge. This inverse correlation suggests institutional portfolios may be rebalancing toward digital assets. The trend mirrors 2020’s flight from bonds to equities, but with crypto as the beneficiary.

Market dynamics now pit store-of-value narratives against each other. Gold’s weakness has become Bitcoin’s catalyst, with ETF flows serving as the clearest indicator of capital rotation. The $839 million infusion marks the largest weekly inflow since spot Bitcoin ETFs launched.

Whales Bet Big on Bitcoin Despite Price Dip to $108K

Two cryptocurrency whales have placed bullish bets totaling $135 million on Bitcoin, signaling strong confidence in the digital asset's recovery. A $115 million long position was opened with 13x leverage at an entry price of $110,123, already showing a 7.65% gain. Separately, another trader initiated a $20 million position at $110,590 per BTC.

Market analysts note Bitcoin is undergoing a healthy retest phase following recent volatility. The 21-week EMA at $111,000 represents a key support level, historically serving as a foundation during mid-cycle corrections. Price action suggests institutional players are accumulating during this consolidation period.