Bitcoin price consolidated around the $112,000 level on October 29, 2025, as cryptocurrency traders remained cautious ahead of the highly anticipated Federal Reserve policy decision scheduled for announcement later Wednesday. The leading digital asset has experienced considerable volatility over the past 24 hours, oscillating between $112,000 and $114,000 while the broader crypto market endured significant liquidation pressure affecting leveraged positions across major exchanges.
Market data from CoinGlass reveals that approximately $567 million in total crypto liquidations occurred over the preceding 24 hours across 150,568 traders globally, with $409 million of these forced closures concentrated among long position holders betting on price appreciation. The liquidation cascade reflects nervous positioning ahead of the Federal Open Market Committee (FOMC) meeting and announcement of the central bank’s interest rate decision, where markets price in a 98 percent probability of a 25 basis point rate reduction.
Bitcoin’s market capitalization currently stands at approximately $2.24 trillion, with daily trading volume at $64.8 billion on major exchanges. The cryptocurrency’s total percentage decline over the past 24 hours reached 1.06 percent, though longer-term performance remains positive with Bitcoin up 5.8 percent for the week and 3.4 percent for the week despite current consolidation pressures.
Federal Reserve Rate Decision Drives Market Sentiment
The Federal Reserve’s FOMC meeting, running October 28-29 with the policy decision announcement scheduled for 2:00 PM Eastern Time (11:30 PM IST), represents the primary catalyst governing cryptocurrency market dynamics. Traders broadly expect the Fed to reduce interest rates by 25 basis points, lowering the target funds rate from 4.25-4.50 percent to 4.00-4.25 percent, marking the second consecutive rate cut in 2025 following September’s initial reduction.
CME FedWatch data indicates 97.8-98 percent probability of the anticipated quarter-point cut, making the outcome virtually priced into current market conditions. However, what remains uncertain is Fed Chair Jerome Powell’s guidance regarding future policy direction, particularly regarding the potential initiation of quantitative easing (QE) and the pace of continued rate reductions through year-end 2025.
Market participants anticipate that Powell may emphasize a data-dependent approach while signaling a controlled liquidity expansion, balancing concerns about labor market weakness against persistent inflation pressures slightly above the Fed’s 2 percent target. The Fed’s decision to potentially end quantitative tightening (balance sheet runoff) would further inject liquidity into financial markets, potentially benefiting risk assets including cryptocurrencies.
Liquidation Events Signal Nervous Market Positioning
The $567 million in liquidations over 24 hours represents substantial forced position closures, with Bitcoin long positions accounting for $88.82 million in losses and Ethereum longs suffering $122 million in liquidations. This bifurcation underscores broader market nervousness where risk-on sentiment has retreated ahead of major policy announcements.
Glassnode analytics data identifies critical support and resistance levels governing short-term Bitcoin price action. Strong buying interest concentrates around the $111,000 mark, representing the accumulation level where investors demonstrate acute appetite for Bitcoin purchases at depressed valuations. Conversely, significant selling pressure emerges near $117,000, where short-term holders and profit-takers position themselves to exit positions if resistance surrenders.
These identified zones represent critical decision points for price direction post-FOMC announcement. Should Bitcoin decisively break above $117,000, technical analysts project potential continuation toward $120,000-$123,000 resistance levels, with more ambitious targets approaching $130,000-$143,000 should momentum sustain. Conversely, should support at $111,000-$112,000 fail decisively, liquidation cascades could accelerate selling toward $108,000-$110,000 levels.
Whale Activity Shows Bullish Conviction Despite Volatility
Institutional and whale traders, despite prevailing market nervousness, have demonstrated continued bullish conviction through substantial position accumulation. Data indicates that whales added $237 million in Bitcoin long positions ahead of the Fed decision, suggesting sophisticated traders maintain confidence in near-term upside potential despite current price hesitation.
One major whale executed a particularly bold $29 million long position at $111,658, employing high-leverage stakes that signal expectations for Bitcoin to decisively break above $112,000 and sustain that breakout. Such whale accumulation during periods of retail nervousness typically precedes sharp volatility and directional moves, as institutional capital consolidation often catalyzes broader market participation.
Analysts note that Bitcoin has logged four consecutive green daily candles, suggesting systematic accumulation by institutional or algorithmic players employing time-weighted average price (TWAP) strategies that distribute large purchases across multiple periods. This patient capital positioning contrasts sharply with panic selling from retail traders, creating bifurcated market dynamics where professional buyers accumulate weakness.
Market Technicals and CME Gap Analysis
Liquidity heatmaps reveal crowded short positions concentrated between $115,000 and $121,000, according to analysis by market observers including AlphaBTC’s Mark Cullen. Cullen’s “Bitcoin liquidity sandwich” analysis identifies potential for short liquidation squeeze should Bitcoin establish momentum above the October 13 bounce high, with cascading liquidations potentially triggering additional upside.
Separately, CME futures gaps present tactical reference points for potential retracement levels. A CME gap identified at the $111,000 level possesses historical fill rate of approximately 70 percent, suggesting Bitcoin’s current consolidation could precede renewed movements targeting gap closure before establishing new directional trends. Such technical formations frequently appear ahead of significant volatility and policy-driven market moves.
Broader Crypto Market Performance
Beyond Bitcoin, the cryptocurrency complex demonstrates mixed dynamics with Ethereum declining 2.49-3 percent while Solana slipped 1.06 percent, underperforming Bitcoin’s relative resilience. The total cryptocurrency market capitalization retreated to approximately $3.78-3.9 trillion, representing a 1-2.23 percent decline over the 24-hour period.
Notably, Bitcoin dominance surged above 60 percent, signaling capital consolidation into the largest and most liquid cryptocurrency at the expense of smaller altcoins. This pattern typically precedes altseason, though current conditions suggest that broader market weakness and liquidation pressures have delayed anticipated altcoin appreciation.
Capital Rotation and Quantitative Easing Expectations
Analysts attribute medium-term crypto market strength to anticipated capital rotation from traditional safe-haven assets toward Bitcoin as Federal Reserve monetary easing progresses. Specifically, expectations for $1.5 trillion in liquidity injection through quantitative easing are projected to support asset prices across risk categories, with cryptocurrencies positioned to benefit substantially.
The preliminary US-China trade deal framework similarly contributes to supportive sentiment, easing global trade tensions and supporting a weaker US dollar—conditions historically favorable to Bitcoin appreciation. The confluence of monetary easing, trade progress, and declining real interest rates creates structural tailwinds for cryptocurrency markets extending into late 2025.
Analyst Outlook and Price Targets
Leading cryptocurrency analysts maintain bullish medium-term outlooks contingent upon Fed policy alignment with expectations. Should the Fed deliver the anticipated rate cut and signal continued easing, technical analysts project Bitcoin could advance toward $118,000-$123,000 relatively quickly, followed by potential movement toward $130,000-$143,000 within a 4-8 week window.
However, should the Fed surprise markets with hawkish language suggesting rate-cut pause or economic concerns, Bitcoin could experience sharp reversals toward $110,000-$108,000 support zones, triggering additional liquidation cascades affecting leveraged traders.
Conclusion
Bitcoin’s consolidation at $112,000 reflects classic pre-Fed-decision dynamics where traders balance bullish structural factors against short-term uncertainty. The $217 million in crypto liquidations, while substantial, remains modest relative to October’s record $20-40 billion liquidation event, suggesting market risk management has improved. Successful navigation of the Fed decision could catalyze renewed momentum toward $120,000+, while policy disappointment could accelerate selling pressures. Market participants should monitor Powell’s complete statement and guidance carefully, as nuanced messaging regarding QE and rate-cut sequencing will significantly influence post-announcement price direction.
