Is This Final Bitcoin Price Correction Before US Shutdown Ends, Fed Rate Cuts?

Bitcoin price and the broader crypto market are facing yet another selling pressure today, triggering nearly $250 million in long liquidations. Top altcoins like Ethereum (ETH), Solana (SOL), XRP, BNB are also trading 3-5% down, even on the news that the US shutdown is likely to end soon. This could make way for all the policy decisions with the much-anticipated Fed rate cuts next week.

Bitcoin Price Corrects While the US Shutdown Ends Soon

Bitcoin is once again facing selling pressure, correcting 3% in the last 24 hours, and is currently trading at $107,500 levels. This selling pressure is visible across altcoins and the broader crypto market today, with overall crypto market liquidations soaring to $320 million, of which $250 million is in long liquidation.

However, on-chain data shows that the Bitcoin price downside could be limited from here as seller exhaustion is visible. Bitcoin outflows from Binance have surged sharply, signaling a shift in market sentiment.

Analysts note that such negative exchange flows typically indicate that investors are no longer looking to sell. Instead, they are moving their holdings into cold storage, suggesting renewed confidence.

Data over the past 30 days shows a clear trend of declining selling pressure. This shows that investors are steadily withdrawing BTC from exchanges and consolidating positions off-platform. Thus, the Bitcoin price downside could be limited from here onwards.

Crypto analyst Ted Pillows highlighted a sharp decline in the CBOE Volatility Index (VIX), noting it has dropped another 10% today and is now down 36% from last week’s peak. According to Pillows, the steep fall in VIX indicates fading fear and uncertainty. This could ultimately benefit Bitcoin and the broader crypto market.

US Shutdown Ending, Fed Rate Cuts Soon

The market reaction remains indecisive as macro uncertainty continues. On one hand, White House adviser Kevin Hassett said the ongoing U.S. government shutdown is likely to end this week. This development could help restart progress on pending cryptocurrency regulatory measures.

Prediction platform Polymarket now shows rising odds of an earlier resolution to the U.S. government shutdown. Over the past 24 hours, traders have shifted toward a quicker end, with November 5 currently seen as the most probable date for the shutdown to conclude.

However, on the other hand, Trump has threatened to impose a 155% tariff on China if the negotiations don’t proceed as expected. With the two biggest global economies engaged in a tariff war, the market remains at a crossroads.

All eyes will be on the Fed rate cuts expected next week. Market experts believe that there will be another 50 bps rate cut before the end of 2025.