Crypto Markets Stumble as FOMC Meeting Looms - Here’s What Traders Need to Watch

Digital assets face mounting pressure ahead of critical Federal Reserve decision

The Waiting Game

Cryptocurrency markets are sweating bullets this week as investors brace for the Federal Open Market Committee's latest policy announcement. Bitcoin and Ethereum both slipped below key support levels while altcoins followed suit in a classic risk-off move.

Traders are dumping speculative positions faster than Wall Street bankers dump their morals during bonus season. The entire crypto complex is holding its breath, waiting to see whether Jerome Powell & Co. will maintain their hawkish stance or finally signal some relief.

Market technicians are watching those Fibonacci retracement levels like hawks, while derivatives traders are scrambling to adjust their positions. Options markets are pricing in heightened volatility through the meeting - because nothing says 'stable monetary policy' like watching your portfolio swing 20% in an afternoon.

Remember when traditional finance types said crypto was too volatile? Now they're creating the volatility themselves. The irony's thicker than a blockchain ledger.

In a cautious market environment, major cryptocurrencies experienced a decline on October 28, 2025, as investors awaited the Federal Reserve's two-day policy meeting. According to CoinMarketCap, the market's anticipation of the Fed's decision has led to a notable shift in trading behavior.

Market Overview

The overall cryptocurrency market capitalization slipped by 1.5% to $3.93 trillion, with Bitcoin (BTC) trading near $113,831, a 1.4% drop. Ethereum (ETH) followed with a more significant decline of 3.7%, settling at $4,090. Other notable cryptocurrencies such as XRP and Binance Coin (BNB) also saw decreases, falling 1% and 1.6% to $2.64 and $1,132, respectively.

Investor Sentiment

Market participants are closely monitoring the Federal Reserve's expected 25 basis points rate cut, which could bring the rate to a range of 3.75%–4.00%. This anticipation has led to a cautious sentiment among traders, with the average relative strength index dropping over 10 points to 47, indicating a neutral momentum shift.

Impact on ETFs and Open Interest

Despite the declining prices, spot Bitcoin and Ethereum exchange-traded funds (ETFs) have recorded strong inflows, suggesting continued investor interest in these assets. Additionally, open interest in cryptocurrency markets increased by 2% to $165 billion, reflecting ongoing engagement from market participants.

Broader Economic Context

This market movement occurs against a backdrop of broader economic concerns, including inflationary pressures and global economic uncertainty. The Federal Reserve's upcoming decisions are expected to provide further direction to financial markets, including cryptocurrencies, as investors seek clarity on the future monetary policy landscape.

As the Federal Open Market Committee (FOMC) meeting progresses, market participants will continue to assess the impact of potential rate changes on the cryptocurrency market and broader financial environment.

• cryptocurrency
• bitcoin
• ethereum
• fomc