Hello, Asia. Here’s what’s happening before the bell.
Bitcoin lost strength during the Asian session, down 1.1% to $112,806, as traders reduced risk ahead of the Fed’s rate decision later in the day. The pullback cooled a recent crypto rebound even as regional stocks climbed on AI optimism.
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Bitcoin: $112,806, down 1.1%
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Ether: $4,016, down 2.1%
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Solana: $194.64, down 3.3%
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Total capitalization of the cryptocurrency market: 3.8 trillion dollars, down 1.4%
Asia takes inspiration from Wall Street. Tech optimism continued after Microsoft struck a deal to allow OpenAI to restructure as a public benefit company while taking a 27% stake, boosting morale in the region.
You can see it in the price action, as the MSCI Asia ex-Japan rose, Japan’s Nikkei jumped more than 1% to new records, and Korea’s Kospi hit a record high thanks in part to upbeat results from SK Hynix, a key Nvidia supplier.
Futures are mixed in Europe and the US, with the Nasdaq a little firmer and the Euro Stoxx 50 a little softer.
The real turning point today is rates. Markets have almost fully priced in a 25 basis point cut from the Fed. The dollar eased on speculation that more cuts could follow, and traders will listen closely for any hints that the Fed may slow or stop the drain on its balance sheet, impacting liquidity.
“If the Fed signals another round of easing, risk assets like crypto could break out, but if the messaging remains cautious or hawkish, we could see a rapid pullback. For now, the market is perched on the knife’s edge between hope and hesitation,” said Gracy Chen, CEO of Bitget.
US Federal Reserve Chairman Jerome Powell is expected to announce a rate cut today at the end of the two-day FOMC meeting. The meeting will take place October 28-29, and Powell is expected to make the decision today at 2 p.m. ET, followed by a press conference at 2:30 p.m. ET.
Markets will analyze the press release and the Q&A for indications on the evolution of rates and quantitative tightening.
Ryan Lee, chief analyst at Bitget, described the Fed’s expected 25 basis point rate cut to a range of 3.75% to 4% as a move that could inject new liquidity into crypto markets.
“Easing borrowing costs generally boosts risk appetite, which could channel new capital into assets like Bitcoin and Ethereum, triggering 5-10% rallies in the near term,” he said. “As investors seek higher returns, we could also see a rotation of capital away from safer assets and into major altcoins like SOL and XRP, boosting crypto’s appeal as a growth play and inflation hedge.”
