Crypto prices today are drifting lower ahead of the U.S. Federal Reserve’s policy update.
Summary
- Crypto market cap slips 1.5% to $3.88T as BTC trades near $113,000.
- Traders anticipate a 0.25% rate cut, with volatility expected post-meeting.
- Spot BTC and ETH ETFs post strong inflows, showing steady institutional demand.
The total market capitalization has slipped 1.5% to $3.88 trillion, with most major tokens posting slight losses. At press time, Bitcoin trades at $112,831, down 1% in the past 24 hours, while Ethereum changes hands at $4,016, a 2% drop. BNB is down 2.9% to $1,102, and XRP trades at $2.62, easing 0.4%.
Market data indicates a slight decline in risk tolerance. At 51, the Crypto Fear & Greed Index has hardly changed from the previous day, indicating a wait-and-see mood rather than panic. According to CoinGlass data, open interest across major exchanges has dipped 1.34% to $163 billion, while total liquidations rose to $521 million, mostly from overextended long positions.
Fed rate decision in focus
All eyes now turn to Washington, where the Federal Open Market Committee is expected to announce its decision later today. Futures imply a 97% chance of a 0.25% rate cut, as per CME FedWatch. Softer inflation data from Oct. 24 has strengthened expectations that the Fed will continue easing into 2025.
Still, investors remain cautious after hawkish notes from the previous meeting, prompting profit-taking and a quiet trading tone. “FOMC Day jitters” is how one trader described it on X. Bitcoin’s tight range near $113,000 reflects that hesitation, with volatility likely to spike once the Fed statement hits at 2:00 PM ET, followed by Chair Jerome Powell’s press conference half an hour later.
ETF inflows boost sentiment
Meanwhile, institutional inflows continue to offer a counterweight to the macro nerves. U.S. spot Bitcoin exchange-traded funds drew $202 million in net inflows on Oct. 28, and Ethereum funds added $246 million` This shows steady interest from professional investors despite the subdued trading tone.
The next move likely hinges on the Fed’s tone whether it leans toward more easing or keeps a firmer hand on rates. Rate cuts historically fuel crypto rallies. A dovish tone could push BTC toward $115,000-$118,000 area. Anything less might lead to a retest of the $108,000 support.
