“With the Fed week looming, Bitcoin declines while DOGE and ETH head the market drop as traders factor in a 4.25% rate cut.”

Bitcoin Steadies Near $114K as Traders Brace for Fed Rate Cut and Leverage Builds
October 28, 2025

Bitcoin hovered around $114,000 on Monday, pausing after testing recent highs as traders adopted a cautious stance ahead of a Federal Reserve meeting expected to deliver the year’s second rate cut.

The broader crypto market followed a softer tone, with Ether (ETH) down 2.6% to $4,115, and Solana (SOL) and Binance Coin (BNB) slipping about 2% each. The mild retreat came after a robust weekend rally that propelled Bitcoin from $104,800 to nearly $116,000, supported by optimism over U.S.–China trade developments and improving global risk sentiment.

“Bitcoin’s rebound reflects renewed institutional demand and long-term confidence,” said Lacie Zhang, research analyst at Bitget Wallet. “Open interest rising from $25 billion to nearly $30 billion indicates new leverage entering the market — a double-edged sword that could fuel upside momentum above $112K but also increase liquidation risk below $110K.”

The pattern echoes earlier this month, when leveraged traders chased modest gains but faced resistance near the $117,000–$120,000 range. This time, however, market participants appear less anxious than during the October correction that triggered a record $19 billion in liquidations.

Data from CoinGlass shows that open interest and funding rates remain high yet stable, suggesting that positioning ahead of the policy announcement is measured rather than excessive.

The Federal Open Market Committee (FOMC) meets on October 28–29, with markets largely expecting a 25-basis-point cut to the 4.00%–4.25% range. Analysts see the move as confirmation of the Fed’s shift toward easing, even as inflation remains marginally above target.

“Powell will likely emphasize a data-dependent approach while signaling a gradual liquidity expansion,” Zhang noted. “That balance between caution and accommodation is what’s stabilizing Treasuries and supporting sentiment across equities and crypto alike.”

The Fed’s pivot comes as a U.S. government shutdown continues to hinder official economic reporting. Fed Chair Jerome Powell has reportedly informed policymakers that the central bank will rely more on private sector indicators, such as ADP employment data, until official reports resume — a key detail traders are monitoring closely.

Bitcoin’s 5.8% weekly gain stands in contrast to weakness in major altcoins, a divergence analysts attribute to capital rotation and consolidation following recent volatility. Total crypto market capitalization remains steady near $3.9 trillion, according to FxPro, holding above both its 50-day and 200-day moving averages.

“The market has largely shaken off its earlier anxiety,” said Alex Kuptsikevich, chief market analyst at FxPro. “Bitcoin’s bounce above $116K signals renewed strength, with the $117K–$120K range acting as resistance. A decisive breakout could open the path to new all-time highs.”

Still, long-term holders appear to be taking advantage of the recent strength. On-chain data from OnChainSchool shows that coins dormant for over seven years are being moved at record rates, suggesting profit-taking among early investors.

Altcoins traded mixed during early Asian hours, with XRP near $2.65, SOL around $202, and DOGE down 3% to $0.2018. TRX declined 1.4% to $0.2989.

As Fed week gets underway, traders appear to be shifting from fear to cautious optimism. With leverage rebuilding across exchanges, the next major move — whether a push higher or a sharp correction — will likely depend less on the Fed’s decision itself and more on how the market manages its growing exposure.

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