Bitcoin traded around $81,000 ahead of the Fed decision, while major altcoins also recovered. Crypto investors turned their attention to how the US central bank’s messaging could shape risk appetite for the rest of the year.
In morning trading, Bitcoin rose approximately 2% to just below $82,000. At the time of writing, it is trading around $81,424.
Ethereum gained around 2% to move above $2,350, while Solana posted a similar increase to reach approximately $102.
Altcoins Recover Ahead of the Fed Decision
XRP and Dogecoin gained approximately 3%. Zcash climbed 8% to around $1,320, while Hyperliquid’s HYPE token rose roughly 5% to trade near $81.
BNB gained around 1%, while TRX advanced less than 1%. The rebound, following Bitcoin’s weekend decline to approximately $79,000, showed buying spreading across crypto assets ahead of the decision.
Following the Fed announcement, investors will watch whether Bitcoin holds its gains and whether Ethereum and other major altcoins sustain their momentum.
Interest Rates Expected to Remain Unchanged
The Fed decision will be announced today at 9:00 p.m. Turkish time, followed by Chair Kevin Warsh’s press conference at 9:30 p.m. According to the official schedule, this meeting will not include new economic forecasts or interest rate projections.
The central bank raised its policy rate by 25 basis points to a range of 3.75%–4.00% in September. The prevailing expectation for October is that rates will remain at this level.
CME FedWatch data priced in a 93.9% probability of rates remaining unchanged.
For crypto assets, one key consideration will be how long the current rate stays in place. Elevated borrowing costs can affect leverage and the capital investors allocate to risk assets, making the prospect of further tightening a closely watched issue.
Liquidations Draw Attention in Leveraged Trading
Meanwhile, market data showed approximately $175 million in crypto positions liquidated over the past 24 hours. Short positions accounted for most liquidations, while open interest in Bitcoin futures increased by 0.65%.
The closure of positions betting on falling prices can create additional buying pressure during a rally. Assessing the strength of a price increase therefore requires looking at both spot demand and moves driven by the unwinding of leveraged positions.
Coinbase Institutional also highlighted Bitcoin’s sensitivity to interest rate expectations in its October 16 assessment. The firm noted that Treasury yields rose following strong inflation data, while Bitcoin fell from approximately $83,800 to below $82,000.
Which Signals Will Matter After the Decision?
Following the Fed decision, the initial focus will be on how much room the policy statement leaves for further rate increases. Crypto markets could face selling pressure if Warsh describes inflation pressures as persistent and reinforces the prospect of additional tightening.
A more cautious approach that emphasizes monitoring incoming data could soften investors’ rate expectations. These are potential scenarios that depend on the tone of the announcement; leaving rates unchanged alone does not guarantee a Bitcoin rally.
Whether Ethereum and Solana follow Bitcoin’s moves around $81,000 will indicate how broadly the market is responding. Changes in trading volume and open interest will also help investors assess whether new positions or the closure of existing trades are driving the move.
The statement released at 9:00 p.m. and the press conference half an hour later could trigger different price reactions. Investors will therefore watch whether the market’s initial direction holds as Warsh answers questions.
