Key Takeaways
What could the Fed’s decision mean for Bitcoin?
A 25 basis point rate cut could inject liquidity and push Bitcoin toward a new ATH.
Are Traders Confident Ahead of the FOMC?
Whales are making big moves – a mysterious whale made $48 million in leveraged BTC and ETH bets.
The Federal Reserve’s upcoming decision on October 29 could be the catalyst that sets the tone for the broader crypto market.
As traders brace for a possible rate cut, major players are already preparing for what Bitcoin could be [BTC] next big move.
The Fed’s first decision after the shutdown
The two-day meeting of the Federal Reserve’s Federal Open Market Committee (FOMC) begins on October 29, with markets focusing on whether policymakers will implement a 25 basis point rate cut.
This is the Fed’s first meeting since the U.S. government shutdown caused by a partisan standoff over health insurance financing.
Investors are largely pricing in a rate cut, which would drop the federal funds rate from 4% to 4.25%, the level set after the previous 25 basis point cut on September 17.
A move to relax the policy could inject new liquidity into the crypto market. David Hernandez, Crypto Investment Specialist at 21Shares, told AMBCrypto:
“In recent months, markets have shifted sharply between gold, stocks and crypto, as Trump’s rate moves continue to shape investor behavior.”
He added:
“Gold attracts bids during geopolitical stress, stocks rise on dip buying and policy optimism, and Bitcoin outperforms as risk appetite strengthens again.”
More upside for Bitcoin
Following rising expectations of a Fed rate cut, analysts view Bitcoin’s recent breakout as a major turning point.
Market expert Michael van de Poppe called the $112,000 marks a ‘critical resistance zone’. Once Bitcoin broke through, he said, the bull market was clearly still intact.
Moreover, he expected a brief pullback before the FOMC meeting, after which Bitcoin could aim for a new all-time high in November.
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Adding to the optimism, data about the chain showed that whale 0x960B deposited 3.72 million USDC into Hyperliquid [HYPE] in the past nine hours. Then the whale opened 15x leveraged longs.
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This concerns $27.7 million invested in 240 BTC and $20.3 million in 4,874 Ethereum [ETH]This signals a rise in investor confidence ahead of the Federal Reserve’s upcoming decision.
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Hernandez noted:
“The combination of expected Fed easing and renewed optimism around US-China trade talks has supported Bitcoin’s latest recovery. If the Fed signals additional cuts and deepens trade advances, risk assets could see a new wave of speculative inflows, especially Bitcoin.”
Looking ahead, Hernandez expects that Bitcoin may surpass its previous record high of $125,000 by the end of the year, driven by growing institutional demand and improving macroeconomic conditions.