On October 28, 2025, the cryptocurrency market experienced a broad downturn, with major assets like Bitcoin and Ethereum dipping as investor caution prevailed ahead of a key Federal Reserve meeting. This pullback highlights the market’s ongoing sensitivity to macroeconomic signals, even in the face of sustained institutional interest.
A Market in Waiting
The crypto market stepped into the week on a cautious note, with its total value dipping to around $3.93 trillion. The decline was widespread, affecting the majority of major cryptocurrencies.
Leading the downturn, Bitcoin fell 1.4% to approximately $113,831, while Ethereum saw a sharper decline of 3.7%, trading around $4,090. Other major assets like XRP and BNB also traded in the red, reflecting a broader risk-off sentiment among traders. This cautious mood was also captured in market sentiment indicators, with the Crypto Fear & Greed Index falling into neutral territory.
The Fed in Focus
The primary driver for the day’s cautious stance was the upcoming Federal Open Market Committee (FOMC) meeting. Financial markets were pricing in an overwhelming 96-98% probability of a 0.25 percentage point (25 basis points) rate cut , which would bring the benchmark interest rate to a target range of 3.75% – 4.00%.
This high degree of certainty, however, did not translate into market confidence. Instead, it created a “wait-and-see” environment. Traders were hesitant to make significant moves ahead of the official announcement and, more importantly, the subsequent press conference by Fed Chair Jerome Powell. His comments on the future path of interest rates and the economic outlook were seen as critical for determining the next major move for risk assets like cryptocurrencies. The situation was further complicated by a partial U.S. government shutdown, which was blocking the release of new economic data, leaving investors to navigate with an incomplete picture.
A Glimmer of Institutional Conviction
Despite the day’s price weakness and the palpable caution, underlying data pointed toward continued long-term belief in the asset class. Spot Bitcoin ETFs recorded $149.30 million in net inflows, while Spot Ethereum ETFs saw $133.95 million in inflows. This steady institutional demand, even during a pullback, suggests that larger players view such dips as potential buying opportunities and remain confident in the structural growth story of crypto.
From a technical perspective, Bitcoin was navigating a critical consolidation zone. Analysis pointed to a major resistance level at $117,000. A decisive break above this ceiling was seen as a potential trigger for a fresh bullish move toward the $120,000 – $122,000 range. On the downside, a key support zone was identified between $108,000 and $110,000, a range that would be crucial for bulls to defend to prevent a deeper correction.
