Bitcoin News Today: Fed Cuts and Trade Optimism Boost Bitcoin, But Risks Remain

Bitcoin traded near $113,367 on October 26, 2025, as investors navigated a pivotal week marked by the Federal Reserve's anticipated interest rate cut and evolving U.S.-China trade dynamics. The Federal Open Market Committee (FOMC) meeting on October 28-29 is expected to reduce rates by 25 basis points, bringing the federal-funds target range to 3.75%-4.00%, according to a FOMC meeting preview. Analysts suggest the move, driven by a cooling labor market and easing inflation, could further buoy crypto markets, which have already seen Bitcoin rally 1.59% in the past 24 hours, according to a Coinpedia report.

The U.S. and China's trade negotiations also injected optimism into the market. A confirmed meeting between President Donald Trump and Chinese leader Xi Jinping on October 30—alongside a reported framework agreement to delay rare earth export controls and reduce tariffs—spurred a 1.6% gain in Bitcoin to $111,390, according to Barron's coverage. The breakthrough, which followed progress in Malaysia and a preliminary agreement to lower fentanyl-related tariffs, lifted the global crypto market cap to $3.83 trillion, according to the Coinpedia report. "Lower interest rates make investors more likely to take on risk," said B2BINPAY analysts, noting crypto's potential to extend gains into November if the Fed avoids a hawkish surprise; the preview made a similar point.

The Fed's cautious approach is partly due to delayed economic data from the U.S. government shutdown, which has obscured the full picture of inflation and labor market conditions, the FOMC meeting preview said. Despite this, markets fully price a follow-up rate cut in December, according to a Morningstar report. Meanwhile, the U.S. and Japan also signed agreements to secure rare earth supplies and advance nuclear technology, aiming to reduce reliance on China, according to a MyIND report. These moves underscore a broader trend of geopolitical cooperation that could stabilize supply chains and ease macroeconomic pressures on crypto markets.

Technical indicators for Bitcoin remain bullish. The asset has reclaimed its July value area low, with analysts expecting a temporary dip below $110,000 before a potential push toward $114,000, according to the Coinpedia report. Ethereum and altcoins like Solana and Dogecoin also gained traction, with Ethereum rising 2.7% to $4,049 and XRP surging 11% this week, per the Coinpedia report. The altcoin revival, described by analyst Michaël van de Poppe as the end of a four-year bear phase, is supported by improved on-chain metrics and reduced selling pressure, as Coinotag noted.

Global central bank easing, including the Fed's anticipated 25-basis-point cut, is fueling liquidity in the crypto sector. The probability of the rate cut stands at 98.3%, according to a TradingView note. This aligns with broader macroeconomic tailwinds, including cooling inflation and a softening labor market, which have positioned Bitcoin for further gains.

Investors are now watching for signals from the FOMC meeting and the Trump-Xi summit. A successful trade deal could ease tariffs and reduce volatility, while a hawkish Fed response might temper crypto's rally. For now, the market remains cautiously optimistic, with Bitcoin holding above key support levels and altcoins showing signs of sustained momentum.