Bitcoin Tops $115K as Fed Rate Cut Hopes and Solana ETF Launch Drive Crypto Surge

I. Crypto Market Overview

Key Takeaways

Macro Environment

The Federal Reserve is expected to cut rates by 25 basis points this week, fueling risk appetite and driving Bitcoin above $115,000. US bank reserves have dropped below $3 trillion, intensifying liquidity concerns and boosting institutional inflows into crypto. Regulatory clarity advances as the US appoints a crypto-friendly CFTC chair and JPMorgan integrates Bitcoin and Ethereum as loan collateral.

Crypto Market

The crypto market is broadly higher over the past 12 hours, led by Bitcoin up 0.8% to $114,681 and Ethereum up 1.4% to $4,135. Virtuals Protocol surged 22.1%, PI Network gained 10.2%, and DASH rose 7.1%, driven by ecosystem upgrades and strong user activity. Altcoins outperformed, with DeFi and AI sectors leading gains amid robust trading volumes and positive macro sentiment.

Today's Outlook

Hong Kong launches the world’s first Solana Spot ETF, marking a milestone for institutional crypto access. Over $650 million in SUI, SOL, and DOGE tokens begin unlocking today, potentially impacting market liquidity and short-term price dynamics.

Fear and Greed Index

38.00% Annual Percentile

36 Fear

Total Crypto Market Cap

$3.89T

1.07%

Total Market Trading Volume

$159.53B

60.22%

Altcoin Season Index

58.33%

Quarterly Percentile

28 / 100

Total Futures Market Open Interest

3.41B

0.58%

Futures

865.78B

2.51%

Perpetuals

II. Industry Updates

Macro-economic Policies

The Federal Reserve will announce its interest rate decision this week, with markets widely expecting a 25 basis point cut. Anticipation of monetary easing has driven Bitcoin above $115,000 and boosted DeFi and altcoin trading volumes, as lower rates typically increase risk appetite in crypto markets.

US bank reserves have fallen below $3 trillion, intensifying concerns over dollar liquidity. This liquidity squeeze has heightened volatility in both traditional and crypto markets, with Bitcoin and Ethereum seeing increased institutional inflows as investors seek alternatives amid tightening financial conditions.

Recent US Consumer Price Index (CPI) data came in below expectations, fueling optimism for further Fed rate cuts. The softer inflation print has triggered a rally in Bitcoin and major altcoins, as lower inflation reduces the likelihood of aggressive monetary tightening and supports risk asset valuations.

Asia-Pacific currencies have strengthened on improved US-China trade sentiment and a weakening US dollar ahead of the Fed meeting. This shift has led to capital inflows into Asian markets and increased demand for digital assets, supporting higher trading volumes and positive sentiment in the crypto sector.

Over $7 trillion in US money market funds could rotate into risk assets like Bitcoin and XRP if the Fed cuts rates further. Historical patterns suggest that monetary easing prompts capital flows from cash to crypto, potentially amplifying market momentum and liquidity in digital asset markets.

Cryptocurrency Regulatory Trends

The White House has appointed Mike Selig as the new CFTC chair, signaling a shift toward clearer crypto regulation and boosting investor confidence in the U.S. digital asset market.

JPMorgan will allow institutional clients to use Bitcoin and Ethereum as collateral for loans, reflecting eased U.S. regulations and deeper crypto integration into traditional finance.

Swiss Bitcoin app Relai secured a MiCA license from France's AMF, becoming the first Bitcoin-only CASP in Europe, which enhances regulatory clarity and supports EU-wide crypto service expansion.

Canada is advancing a stablecoin regulatory framework, aiming for inclusion in the upcoming federal budget, which could reduce capital flight and strengthen domestic crypto market stability.

South Africa was removed from the FATF greylist after strengthening anti-money laundering controls, but faces ongoing challenges implementing the Travel Rule for crypto asset traceability.

Virtuals Protocol (VIRTUAL): Surged 22% in 24h, driven by the launch of VPay neobank app and AI agent integration with Coinbase Retail DEX, pushing volume to $818M.

PI Network (PI): Jumped 10% in 24h as mainnet migration reached 2.69M users and a major KYC update led to 10M tokens leaving exchanges, boosting ecosystem confidence.

DASH (DASH): Rose 7% in 24h, fueled by renewed privacy coin demand and technical upgrades like InstantSend and ChainLock, with trading volume exceeding $259M.

Smart Money Movements

Strategy (formerly MicroStrategy) purchased 390 BTC for $43.4 million at an average price of $111,053 per coin, raising its total Bitcoin holdings to 640,808 BTC as of October 27, 2025.

Bitmine acquired 77,055 Ethereum last week, valued at approximately $319.77 million, increasing its total ETH holdings to 3,313,069, which represents 2.8% of the total Ethereum supply.

BlackRock transferred 1,021 Bitcoin (about $118 million) and 25,707 Ethereum (about $107 million) to Coinbase Prime, totaling $225 million in digital assets moved.

Reliance Global Group announced the acquisition of Solana's SOL token for its digital treasury reserves on October 27, 2025, following previous investments in Bitcoin, Ethereum, Cardano, and XRP.

A crypto whale purchased 8.06 million ASTER tokens worth $9.14 million from Aster DEX at $1.13 per token within the last 12 hours, as tracked by Nansen AI.

Events to Watch

Oct 27 (Mon)

Hong Kong launches the world's first Solana Spot ETF; Over $650M in SUI, SOL, DOGE tokens begin unlocking, impacting market liquidity.

Oct 28 (Tue)

Blockchain Life 2025 opens in Dubai, featuring 200+ speakers and top industry players; EIGEN and OMNI token unlocks add $64.6M to circulating supply.

Oct 29 (Wed)

Federal Reserve announces interest rate decision and holds FOMC press conference; 375ai EAT token generation event on Solana ecosystem.

Oct 30 (Thu)

U.S. Q3 GDP preliminary data, Eurozone and Bank of Japan interest rate decisions released; ZORA unlocks 166M tokens worth $16.3M.

Oct 31 (Fri)

U.S. PCE and Core PCE inflation data, Eurozone annual CPI, and Japan Tokyo core CPI released, providing key macroeconomic signals.

Table of Contents