Bitcoin (BTC) Slips as Traders Eye Fed Rate Decision
Timothy Morano Oct 29, 2025 18:32
Bitcoin dips below $113,000 as markets brace for the Federal Reserve's potential rate cut. Traders are cautious amid a busy week for tech earnings and economic signals.
Bitcoin has experienced a downturn, dropping below the $113,000 mark as traders adopt a cautious stance ahead of the U.S. Federal Reserve's anticipated rate decision. The decline comes amid a busy week for mega-cap tech earnings, according to CryptoNews.
Market Snapshot
The cryptocurrency market saw a pullback as Bitcoin fell by 1.1% to $112,806. Ethereum (ETH) and Solana (SOL) also experienced declines, dropping by 2.1% and 3.3% respectively. The total crypto market capitalization decreased by 1.4% to $3.8 trillion.
In the broader financial markets, positive sentiment was fueled by tech optimism. Microsoft's recent deal to allow OpenAI to restructure as a public benefit corporation, along with acquiring a 27% stake, has boosted regional equity markets. The MSCI Asia ex-Japan index and Japan’s Nikkei both saw gains, with the latter reaching new records.
Fed Rate Cut Looms
Market participants are closely watching the Federal Reserve, which is expected to announce a 25-basis-point rate cut. This move could signal the start of a new easing cycle, potentially impacting liquidity and risk assets like cryptocurrencies. Bitget CEO Gracy Chen noted that a dovish signal from the Fed could lead to a rise in crypto prices, while a hawkish stance might cause a pullback.
Fed's Decision and Economic Implications
Federal Reserve Chair Jerome Powell is set to announce the rate decision at the conclusion of the FOMC meeting. Analysts expect the Fed to cut rates to a range of 3.75% to 4%, which could inject liquidity into the market. Bitget's chief analyst, Ryan Lee, suggested that lower borrowing costs might boost risk appetite, potentially leading to short-term rallies in Bitcoin and Ethereum.
Global Economic Context
The yen has firmed slightly following increased warnings from U.S. officials about Japan's low-interest rates. The Bank of Japan is expected to maintain its current policy. Additionally, major tech companies like Microsoft, Apple, and Amazon are set to release earnings, adding another layer of complexity to the economic landscape.
As Bitcoin hovers under $113K, the market is poised between optimism for a dovish Fed and caution over upcoming economic signals and corporate earnings.
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