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Bitcoin dropped ahead of the Federal Reserve meeting due later today, as traders switched to a wait-and-watch mode.

The total crypto market fell over 2% to $3.88 trillion, with the crypto fear and greed index showing no improvement from the previous day, holding steady at a neutral 51, even as several bullish catalysts had lined up.

Altcoins bled through most of the day as risk-on sentiment vanished from the market, except for a select few low-cap tokens that managed to lock in profits.

Why is Bitcoin price down today?

Bitcoin lost its footing above $115,000 today amid macro caution, which followed a wave of selling pressure that pushed prices toward intraday lows around $112,000.

Even with catalysts like a likely rate cut, renewed diplomatic signalling between Washington and Beijing, and the approval of Solana, Hedera, and Litecoin ETFs, the market failed to hold its ground.

The most logical explanation for the current price action is that traders are treating this as a classic sell-the-news event. 

Markets had already priced in the approval of additional ETFs for assets like XRP, Dogecoin, Chainlink, and Avalanche, while betting heavily on a favourable outcome from both the Fed decision and the Trump-Xi meeting.

On Polymarket, odds of a Fed cut have jumped to 98%, and traders are widely anticipating progress on trade negotiations between the United States and China.

With expectations already this high, the actual events may no longer offer any surprise edge, leading to an unwind of bullish positions that had built up ahead of time.

In the meantime, the derivatives market is showing signs of stress as traders reduce exposure ahead of key events. 

Over the past 24 hours, total liquidations have topped $470 million, with Bitcoin alone accounting for $98 million in wiped-out positions.

The bulk of these were long trades, as nearly $333 million in bullish bets were forcefully closed.

Among altcoins, Ethereum followed with $141 million in liquidations, while Solana saw around $54 million flushed out.

In total, more than 133,000 traders were liquidated across major exchanges, with the largest single position worth $6 million taken out on an ETH-USD pair at Hyperliquid.

The rapid drop in leverage across majors points to a broader deleveraging cycle as traders prepare for clarity from the Fed. 

Until then, risk sentiment is likely to remain fragile, especially with much of the expected good news already priced in.

Will Bitcoin price go up after FOMC meeting?

Currently, all eyes are fixed on the conclusion of the upcoming FOMC meeting, after which Chairman Jerome Powell will deliver his remarks on the Fed’s policy path.

Markets have already priced in a 25 basis point cut, so attention will now shift to any signals about what comes next, particularly whether the chances of another rate cut in December remain on the table. 

If Powell leaves the door open, Bitcoin and the broader crypto market could benefit from renewed risk appetite.

Still, some traders believe the meeting may pass without much impact.

In a note published earlier today, trading resource QCP Capital described the FOMC as a likely non-event, with Powell expected to stick close to the script. 

“The Fed is set to deliver a 25 basis point cut, consistent with its September dot plot, and Powell is unlikely to offer new forward guidance,” it wrote in its market update.

The note also pointed out that the recent government shutdown has created a data vacuum, leaving the Fed with limited visibility on inflation and labour trends. 

“The absence of official data leaves the Fed effectively flying blind. Without inflation or employment prints, any policy recalibration would be premature,” QCP explained.

On the technical side, Bitcoin remains under pressure and is in the middle of what looks like a volatile retest, according to trader and analyst Rekt Capital. 

The analyst flagged the 21-week exponential moving average as a key support level, currently sitting near $111,000.

“Bitcoin just needs to weekly close above $114,500 to confirm a successful retest,” he said in a post alongside the weekly chart.

#BTC

Bitcoin is now in the process of an expected volatile retest

Downside wicking into the 21-week EMA (green) which is located ~$111000 is going to be a possibility

Bitcoin just needs to Weekly Close above $114.5k to confirm a successful retest$BTC #Crypto #Bitcoin https://t.co/UCxeuyY9r3 pic.twitter.com/4zMG2fGLaI

— Rekt Capital (@rektcapital) October 29, 2025

If Bitcoin fails to hold that level, it could open the door for a deeper correction.

Price action near the lower end of the range could trigger more liquidations, especially if sentiment turns following Powell’s press conference.

On the downside, the 24-hour liquidation heatmap shows that major support areas are situated around the $111,000 and $110,000 levels, where a dense cluster of long liquidations can be seen.

(Click on image to enlarge)

Bitcoin 24-hour liquidation heatmap. Source: Coinglass.

Bitcoin was already trading near the lower edge of that band at the time of writing, suggesting the next move could be crucial.

If the price slices below $110,000 with momentum, it could trigger another cascade of liquidations, especially as the underlying bids in that area thin out.

Dropping to this area would also mean that Bitcoin fell decisively below its 21-week exponential moving average, a level that many traders view as a key gauge of trend strength on the higher time frame. 

A clean break below it without a strong recovery could undermine bullish structure and invite deeper selling pressure.

The chart also shows reduced liquidation pressure below $109,000, which might offer a temporary breather, but only if spot demand steps in with conviction. Until that happens, Bitcoin remains vulnerable to further downside.

Some bullish cues came from pseudonymous traders who gauged current price action and concluded that Bitcoin’s broader bullish structure remains intact despite the current sell-off.

“Price reclaimed last week’s breakdown and potentially putting in a new higher low,” Exy wrote in an X post today, adding that fresh ATHs towards the “130k – 140k” is still a possibility.

However, regarding the immediate price trajectory, Bitcoin price may be due for a deeper correction based on past trends, according to well-followed analyst Ted Pillows.

$BTC dropped 6%-8% after the last 3 FOMC meetings.

And it made a new ATH before the next FOMC meeting.

Will this pattern repeat again? pic.twitter.com/Ro2aRF4hXm

— Ted (@TedPillows) October 29, 2025

At press time, Bitcoin price was hovering just above $111,800 with roughly 3% losses on the day.

Top altcoin gainers for the day

Over the past few hours, the altcoin market cap declined 6%, dropping from $1.68 trillion to around $1.58 trillion at the time of writing.

Ethereum (ETH) led the decline after bulls failed to defend the critical $4,000 support level, with the price retreating to $3,947, down 3.7% on the day.

Other major altcoins weren’t spared either. BNB, Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) all posted losses between 1% to 4%, reflecting the broader weakness across the sector.

XRP, which had gained over 9% in the past week, also edged lower to around $2.62.

Only 9 out of the top 99 altcoins managed to stay in positive territory over the last 24 hours.

Official Trump (TRUMP) and Pi Network (PI) topped the gainers’ list, rising 13.6% and 11.3%, respectively.

Meanwhile, Aerodrome Finance eked out a modest 2.6% gain, rounding out the small group of survivors in an otherwise downbeat market.

(Click on image to enlarge)

Source: CoinMarketCap

Official Trump: TRUMP price rallied as whale accumulation intensified, along with a drop in balances held across exchanges.

The memecoin recently broke out of a falling wedge pattern on the daily chart, a formation typically seen as a bullish reversal signal.

This breakout could pave the way for further upside in the coming days, especially if momentum holds.

TRUMP crypto’s gains were also partly supported by the announcement that Trump Media, the parent company of Truth Social, would be launching a blockchain-based prediction market in collaboration with crypto exchange Crypto.com.

Speculation is also building around a potential spot ETF approval from Canary Capital for the TRUMP token.

With the US SEC already greenlighting ETFs for Solana, Hedera, and Litecoin, many believe a TRUMP ETF could be next in line.

Pi: Pi Coin’s recent gains appear to be fueled by circulating rumours that surfaced a few days ago, suggesting the Pi Network has entered the ISO 20022 race, joining the likes of Ripple and Stellar.

While the reports remain unconfirmed, they’ve stirred renewed excitement within the Pi community.

If Pi Coin were to adopt ISO 20022, it could significantly enhance its compatibility with traditional financial systems.

It would potentially pave the way for smoother cross-border transactions, better interoperability with global payment networks, and increased trust from institutional players.

Hype around a potential open mainnet launch also added to the rally, even though separate rumours about an impending upgrade were recently debunked.

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