Shares of the iShares Bitcoin Trust ETF slid to $44.01, down 3.72%, as a hawkish Federal Reserve tone collided with a broad technology selloff, dragging Bitcoin and its largest spot ETF into the crossfire. IBIT Slides 3.7% as Fed Hawks and a Nasdaq Rout Batter Bitcoin — Can the Biggest Crypto ETF Weather a Rate-Hike Cycle?
Shares tumbled to $44.01 as two forces converged: a Federal Reserve that refuses to ease and a technology selloff that dragged crypto lower alongside the riskiest corners of the stock market. For IBIT holders — sitting on $67.1 billion in assets — the question is whether institutional demand can absorb blows that keep arriving from Washington and Wall Street alike.
The Fed Is Tightening, Not Cutting, and Two Officials Wanted More
The FOMC voted 10–2 to hold rates at 3.75%–4%, but two policymakers wanted another quarter-point increase because inflation remains too high.
The October pause followed a rate hike in September — the first in three years.
Markets now price in one more 25-basis-point hike in 2026, with further increases extending into 2027. Higher rates raise the "opportunity cost" of holding Bitcoin — an asset that pays no interest — making it less attractive compared with a risk-free Treasury yielding nearly 5%.
A Brutal Tech Rout Is Pulling Crypto Down With It
Disappointing tech results spurred the worst drop for stocks since June, with the Nasdaq 100 sinking 3.5% and briefly crossing into correction territory.
CNN Business reported the Nasdaq fell 10% from its prior peak and lost $1.2 trillion in market value during October. Bitcoin traded in lockstep with growth stocks, undermining the long-standing argument that crypto offers diversification. IBIT fell roughly in line with the Nasdaq 100's Friday rout, reinforcing its role as a high-beta risk asset.
ETF Flows Turned Choppy — But Institutions Haven't Fled
Spot Bitcoin ETFs lost a combined $773.5 million on October 22–23, then gained $286.3 million on October 26–27.
On October 29, net inflows across all spot Bitcoin ETFs slowed to just $34.3 million, with IBIT contributing $12.3 million. The whipsaw shows big buyers are still present but increasingly selective, waiting for clearer signals before committing fresh capital.
Yields Near 5% Reset the Math for Every Risk Asset
The 10-year Treasury yield stood at 4.94% on October 30, down 4 basis points on the day; it had peaked at 5.31% earlier in the month. Even with the modest retreat, borrowing costs remain at levels that compete directly with speculative assets for investor dollars. Until inflation cools enough for the Fed to reverse course, IBIT shareholders face a market where "safe" bonds offer real competition — and every hawkish signal is a headwind.