Crypto Explodes Ahead of Fed Meeting: Bitcoin Shoots Past $115K as Bull Run Ignites

 

Why Is the Crypto Market Up Today? Fed Rate Cut Speculation Sparks Global Bullish Momentum

The global cryptocurrency market is rallying once again, reigniting bullish optimism among investors who have endured months of volatility and uncertainty. As of today, Bitcoin, Ethereum, and other major digital assets are posting substantial gains, with traders and analysts pointing to a single key catalyst — expectations of an imminent interest rate cut by the U.S. Federal Reserve.

This sudden resurgence in crypto prices comes just days before the highly anticipated Fed meeting on October 29, 2025, where policymakers are expected to make a crucial decision that could reshape not just the U.S. economy but also the future trajectory of global digital assets.

Bitcoin and Ethereum Lead the Charge

Bitcoin (BTC) has once again taken center stage. The world’s largest cryptocurrency surged 2.56% in the last 24 hours and nearly 4% over the past week, trading at $115,280.33 at press time. Bitcoin’s market capitalization has now reached an impressive $2.29 trillion, with a daily trading volume exceeding $57.95 billion.

Source: CoinMarketCap 

Since October 23, BTC has climbed from $106,904 to as high as $116,035 before stabilizing — marking one of the strongest five-day rallies this quarter. The recent surge also underscores renewed confidence from both institutional and retail investors, who appear increasingly optimistic about Bitcoin’s long-term potential as a hedge against inflation and monetary uncertainty.

Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is also enjoying a strong rebound. ETH rose 4.42% in a single day to $4,163.44, bringing its total market value to $502.52 billion with $39.2 billion in daily trading volume. Since October 23, Ethereum has gained more than 11%, moving from $3,725 to over $4,200, thanks in part to a surge in decentralized finance (DeFi) activity and growing institutional interest in tokenized assets.

This synchronized rally between Bitcoin and Ethereum suggests that the market is not driven by speculation alone but by a combination of macroeconomic catalysts and renewed investor confidence in blockchain technology.

The Federal Reserve’s Next Move: The Spark Behind the Surge

A major factor driving this rally is the upcoming Federal Reserve meeting on October 29. Market participants are widely expecting Fed Chair Jerome Powell to announce another rate cut — possibly as much as 50 basis points (bps) — following September’s 25 bps reduction.

Source: FedWatchTool

Currently, the federal funds rate sits between 400–425 bps, and traders have priced in a 96.7% probability of a 50 bps cut, while only 3.3% anticipate a smaller adjustment.

For cryptocurrencies, this development is pivotal. Lower interest rates typically boost market liquidity, encourage risk-taking behavior, and make alternative assets like Bitcoin more attractive. When traditional yields fall, investors often turn to high-volatility, high-reward assets such as cryptocurrencies.

This macro shift has long been seen as a core driver of crypto bull markets. During previous rate cut cycles — including those following the 2020 pandemic — Bitcoin’s price experienced exponential growth. If the Fed proceeds with a deeper cut this month, analysts suggest Bitcoin could break above $120,000, with Ethereum potentially testing the $4,500–$5,000 zone.

Global Markets Amplify Crypto Optimism

Adding fuel to the fire is a broad-based rally in global equities. Japan’s Nikkei 225 index broke through the 50,000-point milestone for the first time in history, surging 65% since April 2025. Meanwhile, the S&P 500 has added $3 trillion in value since October 10, recovering from its earlier slump triggered by President Donald Trump’s China tariff announcement.

Source: X

The Nasdaq 100 futures are also up nearly 1%, buoyed by optimism surrounding a potential U.S.-China trade deal. These developments have reinforced global investor confidence and spilled over into the cryptocurrency space, as traders increasingly view Bitcoin and Ethereum as part of the broader macroeconomic growth narrative rather than isolated speculative assets.

“Crypto markets are moving in tandem with global equities,” explains financial analyst Samantha Liu of Vanguard Research. “Investors see the Fed’s dovish pivot as a green light to rotate capital back into high-risk assets. With liquidity returning, the appetite for digital assets is surging once again.”

Institutional Momentum and On-Chain Activity

Beyond macroeconomics, on-chain data supports this bullish trend. According to Glassnode, the number of active Bitcoin addresses has reached its highest level in six months, while long-term holder supply continues to rise — suggesting accumulation rather than distribution.

Institutional players are also showing renewed interest. Exchange-traded fund (ETF) flows for Bitcoin and Ethereum have increased sharply over the past two weeks, with large asset managers such as BlackRock and Fidelity reporting steady inflows into their digital asset products.

Furthermore, DeFi activity on the Ethereum network has seen a 12% rise in total value locked (TVL) since mid-October, reaching nearly $98 billion — the highest since May 2024. Analysts suggest that lower borrowing costs could reignite lending, staking, and yield farming activity across DeFi platforms, driving further growth in the ecosystem.

What Investors Should Watch

While optimism is high, experts urge caution. The market’s bullish momentum is heavily tied to expectations of a rate cut. If the Fed surprises with a smaller move — or none at all — it could trigger short-term corrections.

“Markets have already priced in a 50 basis point cut,” notes Michael Torres, a senior strategist at JP Morgan Digital Assets. “If Powell signals uncertainty or a slower pace of easing, we might see a temporary pullback before the next leg up.”

Investors should also keep an eye on Bitcoin’s funding rates and open interest, which have climbed sharply in recent days. High leverage in derivatives markets can amplify volatility and lead to cascading liquidations if sentiment shifts abruptly.

Nonetheless, many analysts remain confident that the medium- to long-term outlook for crypto remains strong, driven by structural factors such as institutional adoption, blockchain innovation, and increasing acceptance of digital currencies as legitimate financial instruments.

Market Outlook: Is a Bull Run on the Horizon?

If the Federal Reserve confirms a 50 bps rate cut, Bitcoin could surge past its psychological resistance of $120,000, while Ethereum might reclaim the $4,500–$5,000 range. Altcoins could follow suit, with projects tied to DeFi, AI, and tokenization expected to outperform in the short term.

On the other hand, a hawkish Fed tone could result in a brief correction. Yet, with inflation stabilizing and liquidity expanding globally, any dips may serve as opportunities for accumulation rather than panic selling.

“The crypto market is entering a phase where macro conditions are aligning favorably,” says Liu. “If this continues, we could be witnessing the early stages of the next major bull run.”

Final Thoughts

The crypto market’s strong rally today reflects a powerful mix of macroeconomic optimism, monetary policy expectations, and broader market recovery. Bitcoin and Ethereum’s surge illustrates renewed faith in digital assets as legitimate investment vehicles amid evolving global financial conditions.

As investors await the outcome of the October 29 Fed meeting, the direction of interest rates could determine whether this rally extends into a full-fledged bull market or experiences a brief pause.

For now, the bulls are firmly in control — and the countdown to the next major policy shift has already begun.

Writer @Ellena

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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