Bitcoin News Today: Bitcoin's Dip Reflects Macro Caution as Fed's Policy Meeting Looms

Bitcoin's Price Retreats Amid Global Volatility as Investors Await Fed Policy Signals

Bitcoin (BTC) retreated to $112,412 on October 28, 2025, marking a 1.56% decline over 24 hours amid heightened market caution ahead of the U.S. Federal Reserve's pivotal policy meeting. The move follows a consolidation phase after a recent rebound, with the cryptocurrency trading near $114,000 earlier in the week. Analysts attribute the pullback to a mix of macroeconomic uncertainty, regulatory developments, and technical resistance levels, as explained in a Coinpedia analysis.

The broader crypto market mirrored the bearish sentiment, with a market capitalization dip to $3.9 trillion. Ethereum (ETH) fell over 3%, trading at $3,946, while altcoins like Pi (PI) and Story (IP) declined by 12% and 8%, respectively. Despite the selloff, institutional demand remained resilient, with global crypto investment products recording $921 million in weekly net inflows, according to Edul Patel, CEO of Mudrex. Public companies, including Strategy, added $43.4 million in BTC during the period, noted in a Business Standard report.

Market analysts pointed to the U.S. Federal Open Market Committee (FOMC) meeting as a key driver of caution. "Bitcoin is consolidating as traders turn cautious ahead of the FOMC meeting," Patel said, noting that resistance remains at $116,900, with support near $111,400. The Fear & Greed Index, a barometer of investor sentiment, held steady at 42, signaling a neutral stance with reduced panic and gradual confidence-building, according to the Business Standard coverage.

Meanwhile, liquidation pressures exacerbated the decline. CoinGlass data showed $567 million in crypto liquidations over 24 hours, with 72% affecting long positions. The selloff coincided with the launch of spot altcoin ETFs, which initially spurred optimism but saw profit-taking as traders shifted focus to anticipated Fed rate cuts and quantitative easing (QE) measures, a point also raised in the Coinpedia piece.

In a separate development, veteran investor Tom Lee's $320 million Ethereum (ETH) purchase bolstered institutional confidence in the broader crypto market. According to a CryptoFront News report, his holdings now total $9.4 billion, or 2.8% of the total ETH supply, signaling long-term bullishness. CryptoFront News also reported that Bitmine Immersion Tech, a firm tied to Ethereum reserves, posted a 189% surge in earnings per share, reflecting growing institutional adoption.

Regulatory and market innovation also shaped the landscape. Trump Media & Technology Group announced a partnership with Crypto.com to launch "Truth Predict," a federally compliant prediction market embedded in its Truth Social platform, according to a FinanceFeeds report. The initiative, which leverages CFTC-registered infrastructure, underscores a broader push to integrate crypto-based financial tools into mainstream platforms, as detailed in a Barron's report.

Despite near-term volatility, analysts remain cautiously optimistic. Patel highlighted Bitcoin's resilience, noting it trades just 9% below its October 7 record high of $126,198. "With macroeconomic clarity and renewed institutional inflows, the next leg higher is within reach," he said, as noted in the Business Standard coverage.