Key Takeaways

• Bitcoin fell sharply to $106,411 on 31 October 2025, triggering over $1 billion in liquidations before partially recovering, as uncertainty about the Federal Reserve’s rate policy weighs on investor sentiment and market dynamics.
• Bitcoin dominance surpassed 60%, reflecting heavy selling pressure on altcoins.
• Federal Reserve rate cut uncertainty continues to impact both crypto and traditional financial markets.
• Gold-backed token PAXG rebounded above $4,000 after a four-day decline.
• Altcoin market volatility increased amid shifting risk appetite.
• Institutional investors remained cautious, increasing allocations to stablecoins.
• Trading volumes rose on major exchanges as traders responded to rapid price swings.

Introduction

On 31 October 2025, Bitcoin’s decline to $106,411 prompted over $1 billion in liquidations before the market stabilized. This highlighted persisting uncertainty over Federal Reserve rate policy and its influence on investor behavior. This cryptocurrency market press review also examines rising Bitcoin dominance, shifting altcoin dynamics, and heightened volatility across digital assets.

Top Story

Bitcoin Drops to $106,411, Triggering $1 Billion in Liquidations

Bitcoin briefly dropped to $106,411 in early trading on 31 October 2025, setting off over $1 billion in liquidations across futures markets before partially recovering above $109,000. Analysts attributed the swift move to investor caution amid ongoing Federal Reserve rate policy uncertainty and technical factors in overleveraged positions.

The drop in Bitcoin price also coincided with a surge in trading volumes and a notable increase in Bitcoin’s market dominance to over 60%. Major exchanges reported rapid order book imbalances as traders liquidated long positions across derivative products. The sharp move triggered significant volatility, leading to cascading stop-loss orders and forced liquidations as positions were unwound.

Market observers stated that macroeconomic factors, including persistent debate over the timing of U.S. rate cuts, intensified the selling pressure. Despite the recovery, institutional and retail investors remained cautious, with many shifting short-term allocations to stablecoins or hedged strategies.

Also Today

Bitcoin Dominance Climbs, Altcoins Face Pressure

Following Bitcoin’s price action, its market dominance rose above 60% for the first time since early 2022. This shift reflected increased selling pressure across major altcoins, with top names like Ethereum, Solana, and Cardano posting deeper intraday losses compared to Bitcoin.

Analysts noted that this rotation often occurs in volatile market phases, as traders seek relative safety in larger capitalization assets. The heightened volatility also led to decreased liquidity and wider bid-ask spreads in many altcoin trading pairs, further amplifying price swings.

Market cycles can help frame these sharp capital rotations and changing sentiment as part of broader structural trends.

Fed Rate Cut Uncertainty Impacts Crypto and Broader Markets

Ongoing uncertainty regarding the Federal Reserve’s next interest rate decision continued to influence cryptocurrency and traditional markets on 31 October 2025. Recent economic data and statements from Federal Reserve officials have left the timing of a potential rate cut unresolved.

This policy ambiguity has contributed to risk-off sentiment, with both crypto and equity indices displaying increased volatility. Traders have responded to the lack of direction by moving into stable assets or reducing overall exposure ahead of key economic events in November.

Crypto regulation remains a significant driver of risk appetite and institutional strategy, especially as markets await clarity on policy.

Gold-Backed Token PAXG Rebounds

Amid broader market swings, the gold-backed token PAXG rebounded above $4,000 after a four-day decline. The move mirrored a modest recovery in physical gold prices. Traders cited renewed interest from investors seeking diversification as an additional driver for the uptick in PAXG demand.

The rebound in gold-linked digital assets stood out amid losses in most other major tokens, underscoring a selective risk rotation within the digital asset market.

Market Wrap

Mixed Performance Across Major Cryptocurrencies

Major cryptocurrencies delivered mixed performance on 31 October 2025. While Bitcoin recovered some of its initial losses, Ethereum and certain altcoins like Solana experienced increased volatility and divergent moves.

Solana rose 4.3% to $182, while Cardano fell 1.2% to $0.87 and XRP declined 0.8% to $0.72. Altcoin volatility peaked during overnight trading sessions, with 3–5% moves common during periods of low liquidity.

Market sentiment, as measured by the Crypto Fear & Greed Index, remained high, registering 78 out of 100. Open interest in Bitcoin futures increased by 18% compared to the preceding week, indicating heightened speculative activity.

Technical analysis tools are increasingly essential for navigating this environment, as they can help traders anticipate support, resistance, and momentum shifts during volatile sessions.

Exchange Volumes and Institutional Positioning

Trading volumes across major crypto exchanges spiked to $158 billion in the last 24 hours, up 23% from October’s daily average. Binance retained a leading position with 41% of spot trading volume, followed by Coinbase at 22% and OKX at 15%.

Bid-ask spreads tightened on centralized exchanges but widened on decentralized platforms, pointing to a growing liquidity gap. Exchange-held Bitcoin reserves continued to fall, with 21,400 BTC withdrawn in the past week. This trend reflects ongoing accumulation and reduced availability on trading venues.

Institutional investors responded to the volatility by increasing stablecoin allocations and reducing exposure to riskier altcoins.

Trading strategies that focus on risk management and stablecoin usage are gaining traction among professional participants during such periods.

What to Watch

• Ethereum Shanghai upgrade implementation scheduled for 5 November 2025
• Federal Reserve interest rate decision on 6 November 2025
• Coinbase Q3 earnings report on 7 November 2025
• Bitcoin Miami Conference from 10 to 12 November 2025
• MicroStrategy BTC holdings update expected on 15 November 2025
• EU MiCA Phase 2 regulatory implementation on 1 December 2025

Conclusion

This cryptocurrency market press review highlights the ongoing impact of Federal Reserve policy uncertainty on digital assets. Bitcoin’s sharp drop and subsequent recovery illustrate broader market volatility. Institutional caution, shifts in asset dominance, and increased stablecoin holdings underscore a risk-aware environment. What to watch: Key November events, including the Ethereum Shanghai upgrade and the Federal Reserve rate decision, will shape market sentiment and direction in the near term.

Mindset & Psychology remain critical as traders and investors adapt to fast-moving conditions, heightened risk, and periods of uncertainty.