Bitcoin Holds Steady Near $114K as Traders Await Fed Decision and Leverage Builds
October 28, 2025
Bitcoin hovered around $114,000 on Monday, easing slightly after retesting recent highs as investors turned cautious ahead of this week’s Federal Reserve policy meeting, where the central bank is expected to announce its second rate cut of 2025.
The broader crypto market mirrored Bitcoin’s consolidation, with Ether (ETH) down 2.6% to $4,115, and Solana (SOL) and Binance Coin (BNB) each slipping about 2%. The mild pullback followed a strong weekend that saw Bitcoin surge from $104,800 to nearly $116,000, fueled by optimism around U.S.–China trade talks and improving risk appetite in global markets.
“Bitcoin’s rebound highlights renewed institutional participation and long-term confidence,” said Lacie Zhang, research analyst at Bitget Wallet. “Open interest rising from $25 billion to nearly $30 billion suggests fresh leverage entering the market — a double-edged dynamic that could drive gains above $112K but also increase liquidation pressure below $110K.”
The setup mirrors patterns from earlier in the month, when leverage returned quickly during periods of strength, only to encounter resistance between $117,000 and $120,000. This time, however, sentiment remains steadier compared to the October correction that triggered a record $19 billion in liquidations.
According to CoinGlass, both open interest and funding rates across major exchanges remain elevated but stable, indicating traders are cautious rather than overexposed going into the Fed meeting.
The Federal Open Market Committee (FOMC) is scheduled to meet on October 28–29, with markets broadly expecting a 25-basis-point cut, bringing rates down to the 4.00%–4.25% range. Analysts interpret this as confirmation that the Fed is pivoting toward a more accommodative policy stance, even as inflation hovers slightly above target.
“Powell will likely stress a measured, data-driven approach while signaling a controlled liquidity expansion,” Zhang said. “That balance between caution and easing is helping steady bond demand and improve overall market sentiment — including crypto.”
The policy decision comes amid a U.S. government shutdown that has disrupted key economic data releases. Fed officials are reportedly turning to private indicators, such as ADP employment figures, to guide decisions until public data resumes — a shift closely watched by traders.
Bitcoin’s 5.8% weekly gain contrasts with declines across most altcoins, a divergence analysts say reflects capital consolidation and a shift toward stability following recent volatility. Total crypto market capitalization remains near $3.9 trillion, according to FxPro, comfortably above both its 50-day and 200-day moving averages.
“The market appears to have regained its footing,” said Alex Kuptsikevich, chief market analyst at FxPro. “Bitcoin’s climb above $116K reinforces technical strength, though resistance at $117K–$120K remains formidable. A breakout beyond that zone could signal a new rally.”
Despite improving sentiment, some long-term holders are taking profits. On-chain data from OnChainSchool shows that coins held for over seven years are being moved at the fastest pace on record, hinting at profit-taking among early investors.
Altcoins traded mixed in Asian hours: XRP hovered near $2.65, SOL around $202, and DOGE fell 3% to $0.2018, while TRX declined 1.4% to $0.2989.
With Fed week underway and risk appetite gradually recovering, markets appear to be shifting from fear toward cautious optimism. The next decisive move for Bitcoin — whether a breakout or a correction — will likely depend on how traders manage the growing wave of leverage building across exchanges.
