Bitcoin Holds Steady Near $114K Ahead of Fed Rate Decision

Bitcoin steadied around $114,000 on Monday after briefly testing recent highs, as traders adopted a cautious stance before the upcoming Federal Reserve meeting, where another 25-basis-point rate cut is widely expected. The broader crypto market followed suit, with Ether (ETH) falling 2.6% to $4,115, while Solana (SOL) and Binance Coin (BNB)each slipped around 2%.

Over the weekend, Bitcoin surged from $104,800 to nearly $116,000, driven by optimism surrounding U.S.–China trade talks and improving global sentiment. Analysts say this rebound highlights renewed institutional inflows and long-term conviction. According to Bitget Wallet’s Lacie Zhang, open interest jumped from $25 billion to nearly $30 billion, reflecting increased leverage — a factor that could accelerate gains above $112K but also amplify risks below $110K.

This market setup mirrors earlier patterns where leveraged traders pushed Bitcoin toward resistance levels near $117K–$120K, only to meet selling pressure. Still, sentiment remains notably stronger than during October’s sharp selloff, which triggered record liquidations. Data from CoinGlass shows open interest and funding rates remain elevated but stable, suggesting balanced positioning ahead of the FOMC meeting on October 28–29.

Analysts expect Fed Chair Jerome Powell to signal a cautious easing stance while emphasizing data dependence, a move seen as supporting both equities and crypto markets. The policy shift coincides with a U.S. government shutdownthat has disrupted official data releases, prompting the Fed to rely on private indicators such as ADP employment data.

Despite mild pullbacks in altcoins — XRP near $2.65, SOL at $202, and DOGE down 3% — Bitcoin has gained nearly 6% this week, maintaining momentum above key moving averages. Analysts view the $117K–$120K range as the next major test; a breakout could propel Bitcoin toward new highs, while profit-taking by long-term holders may temper the advance.

With risk appetite returning and leverage rebuilding, markets are entering a phase of measured optimism — awaiting whether the Fed’s dovish tilt will fuel the next leg of the crypto rally.