Bitcoin Steadies Near $114K as Traders Brace for Fed Rate Cut and Leverage Builds
October 28, 2025
Bitcoin hovered around $114,000 on Monday, cooling off after retesting recent highs as investors positioned carefully ahead of this week’s Federal Reserve policy meeting, where the central bank is widely expected to deliver its second rate cut of 2025.
The broader crypto market edged lower alongside Bitcoin. Ether (ETH) dropped 2.6% to $4,115, while Solana (SOL) and Binance Coin (BNB) each declined about 2%. The pullback followed a strong weekend rally that saw Bitcoin climb from $104,800 to nearly $116,000, buoyed by optimism surrounding U.S.–China trade developments and improving global risk sentiment.
“Bitcoin’s rebound signals fresh institutional inflows and growing long-term confidence,” said Lacie Zhang, research analyst at Bitget Wallet. “The rise in open interest from $25 billion to nearly $30 billion indicates new leverage entering the market — a double-edged factor that could accelerate gains above $112K but also amplify liquidation risks below $110K.”
The setup mirrors previous trading patterns this month, when renewed leverage supported modest rallies but met resistance near the $117,000–$120,000 range. Still, traders appear less nervous than during the October selloff that triggered a record $19 billion in liquidations.
Data from CoinGlass shows open interest and funding rates remain elevated yet steady, suggesting participants are adding exposure cautiously rather than overextending ahead of the Fed’s decision.
The Federal Open Market Committee (FOMC) is meeting on October 28–29, and markets broadly expect a 25-basis-point cut to the 4.00%–4.25% range. Analysts see this as the clearest sign yet that the Fed is shifting toward a more accommodative stance, even as inflation remains slightly above target.
“Powell will likely emphasize a measured, data-driven approach while signaling a gradual increase in liquidity,” Zhang noted. “That combination of caution and easing is helping stabilize bond markets and boost sentiment across both equities and crypto.”
The Fed’s policy shift comes as a U.S. government shutdown continues to disrupt official economic reporting. According to reports, Fed Chair Jerome Powell has told policymakers the central bank will rely more on private-sector data, such as ADP employment figures, until government statistics resume — a nuance traders are closely tracking.
Bitcoin’s 5.8% weekly gain stands out against the broader altcoin weakness, a divergence analysts attribute to capital consolidation and defensive positioning following recent volatility. Total crypto market capitalization remains steady at around $3.9 trillion, according to FxPro, staying above both its 50-day and 200-day moving averages.
“The market has largely regained its footing,” said Alex Kuptsikevich, chief market analyst at FxPro. “Bitcoin’s rebound above $116K shows growing technical strength. The $117K–$120K zone remains a tough resistance area, but a clear breakout could drive prices to new highs.”
Despite the improving tone, some long-term holders appear to be realizing profits. Data from OnChainSchool shows coins held for over seven years are moving at the fastest pace on record, signaling profit-taking among early adopters.
Altcoins traded mixed in Asian hours: XRP hovered near $2.65, SOL at $202, and DOGE fell 3% to $0.2018, while TRX slipped 1.4% to $0.2989.
With Fed week underway and risk appetite slowly returning, traders appear to be shifting from fear toward patience. The next decisive move for Bitcoin — whether higher or lower — will likely depend less on the Fed’s decision itself and more on how the market manages the leverage that’s quietly rebuilding beneath the surface.
