Bitcoin Holds Near $114K Ahead of Fed Week as Leverage Builds and Traders Eye Rate Cut
October 28, 2025

Bitcoin steadied around $114,000 on Monday, cooling after testing recent highs as traders positioned cautiously ahead of a key Federal Reserve policy meeting expected to bring the year’s second rate cut.

The broader crypto market softened slightly, with Ether (ETH) slipping 2.6% to $4,115, while Solana (SOL) and Binance Coin (BNB) each fell roughly 2%. The early-week dip followed a strong weekend rally that saw Bitcoin climb from $104,800 to nearly $116,000, buoyed by optimism surrounding U.S.–China trade talks and improving global risk sentiment.

“Bitcoin’s recovery underscores renewed institutional inflows and long-term conviction,” said Lacie Zhang, research analyst at Bitget Wallet. “Open interest climbing from $25 billion to nearly $30 billion reflects new leverage entering the market — a double-edged sword that could amplify upside momentum above $112K but increase liquidation risks below $110K.”

That surge in leveraged positioning mirrors patterns seen earlier this month, when traders chased strength only to hit resistance near $117,000–$120,000. Still, sentiment appears calmer this time, with far less panic than during the October selloff that triggered a record $19 billion in liquidations.

Data from CoinGlass shows that open interest and funding rates remain elevated but steady, suggesting that traders are not yet overstretched going into the Fed meeting.

The Federal Open Market Committee (FOMC) meets on October 28–29, with markets widely expecting a 25-basis-point rate cut to the 4.00%–4.25% range. Analysts view the move as a clear signal of the Fed’s shift toward a more dovish stance, even as inflation remains slightly above target.

“Powell is likely to stress a data-dependent approach while signaling a controlled liquidity expansion,” Zhang said. “That balance between easing and caution is what’s stabilizing Treasury demand and supporting broader risk sentiment, including crypto.”

The policy meeting comes amid a U.S. government shutdown, which has disrupted key economic data releases. According to reports, Fed Chair Jerome Powell has told policymakers the central bank will rely more on private data sources, such as ADP employment figures, until official releases resume — a shift traders are monitoring closely.

Bitcoin’s 5.8% weekly gain stands in contrast to the pullback in most altcoins, a divergence analysts attribute to capital consolidation after recent volatility. The total crypto market capitalization remains near $3.9 trillion, according to FxPro, holding above both its 50-day and 200-day moving averages.

“The crypto market has largely shaken off its earlier fears,” said Alex Kuptsikevich, chief market analyst at FxPro. “Bitcoin’s move above $116K shows renewed strength, with the $117K–$120K zone remaining a key resistance level. A sustained breakout could pave the way for new highs.”

Still, some long-term holders are taking profits. On-chain data from OnChainSchool indicates that coins held for more than seven years are being moved at the fastest pace on record, signaling profit-taking among early adopters.

Altcoins traded mixed in early Asia hours. XRP hovered near $2.65, SOL around $202, and DOGE slipped 3% to $0.2018, while TRX fell 1.4% to $0.2989.

With Fed week now underway and risk appetite gradually improving, markets appear to be shifting from fear to cautious patience. The next decisive move — whether a breakout or a correction — will likely depend less on Fed policy itself and more on how traders manage the surge in leverage building beneath the surface.