TLDR
- Bitcoin is trading near $113K with strong support between $111K and $112K ahead of the Fed’s rate decision.
- Bitcoin ETFs saw $202M in inflows on Oct 28 while Ethereum ETFs added $246M.
- Open interest in options is near monthly highs, signaling possible volatility after Powell’s remarks.
- Total crypto market cap stands near $3.9T as traders remain cautious before the FOMC announcement.
Bitcoin is holding steady around $113,000 as markets remain cautious ahead of a key U.S. Federal Reserve decision. The Federal Open Market Committee (FOMC) meeting, scheduled for today, has placed investor focus on Fed Chair Jerome Powell’s policy remarks. Traders are closely watching for hints on rate direction, which could influence short-term price action across cryptocurrencies and broader risk markets.
Bitcoin Trades Sideways in Tight Range
Bitcoin remained range-bound on Tuesday morning, trading near $113,000 after a week of flat movement below $115,000. Analysts identified clear support around $111,000–$112,000 and resistance near $117,000, forming a narrow corridor for traders.
Timothy Misir, Head of Research at BRN, said, “Bitcoin holds the $113,000 support band as the market braces for today’s FOMC meeting.” He added that spot Bitcoin ETF inflows remain steady, with $202 million recorded on October 28. Ethereum ETFs also saw $246 million in inflows, marking four consecutive days of net buying.
Source: TradingView
The broader crypto market showed low momentum as Ethereum hovered near $4,000, Solana around $195, and BNB at $1,115. Total crypto market capitalization stood near $3.9 trillion, according to data from The Block.
Institutional Demand Cautious Ahead of Fed Decision
Institutional interest in Bitcoin has grown in recent weeks but lacks the strength seen in previous cycles. Analysts say the absence of a clear signal from the Fed may be limiting new bullish momentum.
“Demand is present but lacks the velocity to chase new highs without a dovish surprise from the Fed,” Misir said. Exchange volumes remain low, and leveraged positions are limited, signaling caution among both institutional and retail investors.
Open interest in options is near its October highs, leaving markets exposed to short-term volatility. If Powell’s comments deviate from expectations, traders could react sharply due to this positioning.
QCP Capital stated that the FOMC decision may not bring major policy changes, as the central bank is missing key data. “The ongoing government shutdown has deprived policymakers of key inflation and labor indicators,” the firm wrote. This uncertainty may cause the Fed to avoid any new forward guidance.
Market Eyes Fed, Trade Talks, and Global Sentiment
Investors are also watching political developments, including U.S.–China trade discussions set for later this week. President Trump and President Xi are expected to meet in South Korea to discuss tariffs and shipping costs.
Analysts suggest the meeting could influence global risk sentiment, including crypto. Depending on the outcome, the talks may either support or pressure digital asset markets. “It’s a tightrope act between politics and data,” said Coin Bureau’s Nic Puckrin.
At the same time, softer labor data in the U.S. has added to uncertainty. Traders are hoping Powell’s tone will provide more clarity on rate direction and future policy.
Technical Levels Remain in Focus as Liquidity Stays Thin
Technical indicators show strong resistance at $117,000 and support between $111,000 and $112,000. A break above resistance could signal renewed strength, while a drop below support might lead to a deeper correction.
Standard Chartered analysts noted that Bitcoin may avoid falling below $100,000 again if market conditions remain stable this week. However, other analysts are more cautious, pointing to weak liquidity and recent market shocks.
The October 10 flash crash continues to weigh on sentiment. Many investors are still recovering, with some digital asset funds trading below their net asset value. This has forced some funds to consider selling assets to raise capital for buybacks.
QCP Capital warned that this could lead to more selling pressure if discounts persist. “If discounts persist, DATs may be forced into buybacks funded by asset sales,” the firm noted.
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