Bitcoin, Ethereum Rally as Fed Rate Cut and Solana ETF Launch Drive Crypto Surge

I. Crypto Market Overview

Key Takeaways

Macro Environment

The US Federal Reserve is expected to cut rates by 25 basis points, boosting crypto sentiment and liquidity. Easing US-China trade tensions have triggered a rebound in Bitcoin and altcoins. Regulatory clarity, such as the GENIUS Act, is accelerating stablecoin adoption and institutional blockchain use.

Crypto Market

The crypto market rallied in the past 12 hours, led by Bitcoin up 2.87% to $114,934 and Ethereum up 5.62% to $4,172.54, driven by Fed rate cut expectations. Privacy coins surged, with Zcash up 32.04% and DASH up 23.25%, while Virtuals Protocol rose 19.21% after a Robinhood listing. Solana gained 5.35% ahead of its Hong Kong ETF launch.

Today's Outlook

Hong Kong launches its first spot Solana ETF on HKEX today, potentially attracting significant institutional capital and boosting SOL trading volume.

Fear and Greed Index

38.00% Annual Percentile

36 Fear

Total Crypto Market Cap

$3.89T

3.02%

Total Market Trading Volume

$127.82B

52.82%

Altcoin Season Index

50.00%

Quarterly Percentile

26 / 100

Total Futures Market Open Interest

3.41B

0.57%

Futures

888.00B

5.14%

Perpetuals

II. Industry Updates

Macro-economic Policies

The US Federal Reserve is expected to announce a 25 basis point rate cut on October 29, with CME data showing a 98.3% probability. This anticipated monetary easing is boosting crypto market sentiment, supporting Bitcoin's rally above $115,000 and increasing DeFi liquidity.

Recent US-China trade talks in Kuala Lumpur resulted in a substantial framework agreement, with the US dropping plans for 100% tariffs on Chinese goods. The easing of trade tensions has triggered a crypto market rebound, with Bitcoin and major altcoins posting gains.

Key macroeconomic data releases, including US GDP and Core PCE inflation, are scheduled this week. These indicators are closely watched by crypto traders, as softer inflation data could reinforce expectations for further Fed rate cuts and drive additional capital into digital assets.

The European Central Bank has signaled satisfaction with current interest rates as eurozone inflation reaches the 2% target. Stable monetary policy in Europe provides a supportive backdrop for global risk assets, including cryptocurrencies.

The Reserve Bank of Australia will decide on interest rates following the release of Q3 CPI data this week. Market participants expect that a dovish outcome could enhance risk appetite and positively impact crypto market flows.

Cryptocurrency Regulatory Trends

Donald Trump has nominated Michael Selig as CFTC chair, signaling a pro-crypto regulatory shift and boosting market confidence in U.S. digital asset policy.

The U.S. GENIUS Act has driven a 70% surge in stablecoin payments, providing regulatory clarity and accelerating institutional adoption of blockchain-based remittances.

Western Union is piloting stablecoin settlements post-GENIUS Act, aiming to cut cross-border remittance costs by up to 95% and modernize global payment infrastructure.

Tether has launched USA₮, a U.S.-regulated dollar-backed stablecoin, offering a compliant option for institutions and potentially reshaping the stablecoin market landscape.

The Gulf region is advancing stablecoin regulation, with the UAE and Bahrain leading frameworks that support rapid, low-cost remittances and digital asset adoption.

Zcash (ZEC): ZEC surged 31.8% in 24h with $1.37B volume, driven by Arthur Hayes' $10,000 ZEC call and renewed FOMO for privacy coins amid rising market interest.

DASH (DASH): DASH jumped 23.6% in 24h with $257M volume, fueled by privacy coin demand, whale accumulation, and technical breakout momentum targeting $100.

Virtuals Protocol (VIRTUAL): VIRTUAL rose nearly 15% in 24h after Robinhood US listed the token, sparking renewed trader interest and a notable price rebound.

Smart Money Movements

Sharplink Gaming increased its Ethereum holdings by acquiring 19,271 ETH worth $80.37 million, bringing its total to 859,395 ETH valued at $3.58 billion, as confirmed by Nansen.

A Bitcoin whale transferred 2,772 BTC, valued at $309 million, from Kraken to an unknown address, with onchain analysis suggesting potential institutional involvement.

A smart money address acquired 88.61 WBTC for $10 million at an average price of $112,846, raising its total WBTC holdings to 271.73, valued at approximately $30 million.

A major whale invested an additional $14.41 million in WBTC, accumulating 397.91 WBTC since October 21 for a total investment of $44.41 million, with an unrealized profit of $777,000.

A whale swapped 99,979 SOL worth $18.5 million for 4,532 ETH at $4,084 each, maintaining the $18.5 million investment value, highlighting strategic asset rotation among large holders.

Events to Watch

Oct 27 (Mon)

Hong Kong launches its first spot Solana (SOL) ETF on HKEX, potentially attracting institutional capital and boosting SOL trading volume.

Oct 28 (Tue)

GRASS unlocks 181 million tokens (72.4% of supply, $79.3M); Blockchain Life 2025 opens in Dubai, focusing on blockchain innovation and investment.

Oct 29 (Wed)

Bank of Canada announces interest rate decision; Australia releases Q3 CPI and monthly inflation data, impacting AUD-denominated crypto flows.

Oct 30 (Thu)

US Federal Reserve, ECB, and Bank of Japan announce interest rate decisions; US Q3 GDP and Core PCE data released; BlackRock's ETH staking ETF application deadline.

Oct 31 (Fri)

Eurozone CPI annual data released; OP unlocks 31.34M tokens ($14.2M); $31B in Bitcoin options expire; Mt. Gox repayment deadline may release 34,689 BTC.

Table of Contents