Fed Rate Decision Today: Will Bitcoin Price Rally or Face Another Sell-Off?

The Federal Reserve’s October 28 interest-rate decision could influence Bitcoin and the broader crypto market. Markets largely expect the Fed to keep rates unchanged, making its comments on inflation and future rate cuts important for the next market move.

Bitcoin is trading around the $80,000 level, while Ethereum is near $2,300. The Fed’s policy outlook could influence whether these cryptocurrencies continue recovering or face further selling pressure.

Fed Meeting Today: What Are Markets Expecting?

The Federal Open Market Committee (FOMC) concludes its two-day meeting on Wednesday, October 28. The policy statement is scheduled for 2:00 p.m. ET, followed by the Fed Chair’s press conference at 2:30 p.m. ET. In India, these are scheduled for 11:30 p.m. and midnight, respectively.

Markets largely expect the Fed to keep interest rates unchanged at 3.75%–4.00%, following September’s rate increase. Persistent inflation and high energy prices have limited expectations for interest-rate cuts.

The Fed’s comments on inflation and future policy will be important in determining how markets respond to the decision.

How Could the Fed Rate Decision Impact Bitcoin and Ethereum?

Bitcoin briefly fell below $80,000 before recovering toward $81,000 during Tuesday’s trading. Ethereum remained near $2,300, while XRP and Solana also recorded gains ahead of the announcement.

A dovish Fed outlook, which suggests that rate cuts may be possible, could support Bitcoin and Ethereum by improving demand for riskier assets. A weaker U.S. dollar and lower Treasury yields could also support crypto prices.

However, a hawkish outlook could put pressure on the market. If the Fed signals that inflation remains a concern and interest rates may stay high for longer, the dollar and bond yields could rise. This could reduce demand for cryptocurrencies.

The market reaction will also depend on whether the Fed’s decision matches expectations. Even if rates remain unchanged, Bitcoin and other cryptocurrencies could move sharply if the Fed’s comments differ from what investors expect.

Bitcoin Price Prediction: Why the $80,000 Level Matters

Bitcoin’s ability to hold above $80,000 is a key level to watch ahead of the Fed announcement. Recent selling pushed BTC below its previous trading range, raising questions about the strength of its recovery.

If Bitcoin moves above $81,000 and holds there, the next levels to watch are $82,500 and $84,000. On the downside, a fall below $80,000 could lead to further losses toward $77,000.

With markets expecting the Fed to keep rates unchanged, its guidance on inflation and future rate cuts could have a greater influence on Bitcoin’s next move than the rate decision itself.