The cryptocurrency market witnessed a major surge on Sunday, led by Bitcoin breaking above $113,800 and pushing total market capitalization to a new multi-trillion-dollar milestone.
Data from CoinMarketCap shows the global crypto market cap at $3.85 trillion, rising 2.44% in just 24 hours as investors poured capital back into digital assets.
This explosive move comes amid growing speculation that the Federal Reserve will announce another 25 basis-point rate cut at Wednesday’s Federal Open Market Committee (FOMC) meeting. According to Crypto Rover, traders now assign a 98% probability of a rate cut, setting the stage for a potentially pivotal week for both traditional and digital markets.
?BREAKING:
98% PROBABILITY OF ANOTHER 25 BPS RATE CUT AT WEDNESDAY’S FOMC MEETING! pic.twitter.com/GpahNE753t
— Crypto Rover (@cryptorover) October 26, 2025
Fed Policy and Economic Strain Set the Tone
The prospect of another rate cut has triggered optimism across risk assets, particularly cryptocurrencies, which tend to benefit from looser monetary conditions. A lower federal funds rate makes borrowing cheaper, boosts liquidity, and weakens the U.S. dollar — all of which historically push investors toward Bitcoin and Ethereum.
At the same time, growing concern about the broader economy is reinforcing this shift. Prominent investor Scott Bessent warned that the ongoing U.S. government shutdown is “starting to eat into the muscle of the economy.” His remarks intensified pressure on policymakers to act swiftly, especially as data continues to show sluggish business activity and soft inflation readings.
Market sentiment now reflects a balancing act between optimism for monetary easing and caution over the health of the world’s largest economy.
Bitcoin Leads the Charge Above $113,800
Bitcoin surged more than 2% in the past 24 hours and 5% in the past week, reaching a new high near $114,000. Analysts at 10x Research attributed the rally to renewed ETF inflows and growing expectations of a dovish Fed stance. Softer inflation data released earlier this week has also boosted investor confidence that the tightening cycle is nearing its end.
Still, on-chain data indicates that long-term holders are taking partial profits, creating short-term resistance zones. Despite this, the broader outlook remains bullish, particularly as large corporate buyers re-enter the market.
Adding to the enthusiasm, MicroStrategy’s Michael Saylor hinted at another purchase, posting “It’s Orange Dot Day” — a reference to Bitcoin accumulation events tracked by his company. The post reignited speculation that the firm could expand its already massive holdings of over $70 billion worth of BTC.
It's Orange Dot Day. pic.twitter.com/5FSGmxwoNS
— Michael Saylor (@saylor) October 26, 2025
Ethereum Reclaims $4,000 as Institutional Confidence Returns
Ethereum (ETH) followed Bitcoin’s lead, surging 3.9% in the last 24 hours to trade around $4,094.74. Institutional sentiment toward Ethereum has improved sharply following Bitmine Immersion’s $800 million ETH purchase and Hong Kong’s approval of a spot Ethereum ETF, which further validates the asset’s long-term utility.
Fundstrat’s Tom Lee reinforced the bullish mood, declaring that “ETH remains in a supercycle.” Analysts say Ethereum’s strong fundamentals, combined with growing interest from asset managers, could drive further upside if the market continues to recover.
Ethereum’s market capitalization now stands near $494 billion, maintaining its dominance as the leading smart contract platform.
XRP Strengthens as Ripple Expands Its Institutional Footprint
XRP gained 2.3% over the past 24 hours, trading at $2.64, while its weekly performance remains one of the strongest among large-cap altcoins with a 10.5% gain. On-chain analyst Ali highlighted key technical levels, identifying support at $2.15 and resistance at $2.80.
Two key levels for $XRP:
– Support at $2.15
– Resistance at $2.80 pic.twitter.com/HbfNSNGZFs— Ali (@ali_charts) October 26, 2025
Ripple’s recent Hidden Road acquisition and the launch of its RLUSD stablecoin are adding momentum to the token’s institutional narrative. The company’s strategy aims to expand XRP’s utility within global brokerage systems and settlement infrastructures.
According to 10x Research, these developments — combined with ongoing whale accumulation — signal rising institutional engagement with Ripple’s ecosystem, potentially laying the groundwork for further growth.
Solana Climbs Toward $200, Analysts Eye $260 Resistance
Solana (SOL) continued its upward trajectory, trading at $199.32 after climbing 3.4% in the past day and nearly 5% this week. Analyst Ali identified three key levels: a major resistance at $260, and support zones around $115 and $50.
For Solana $SOL, I’m watching three key levels: resistance at $260 and support at $115 and $50. pic.twitter.com/hFfR7KdZd9
— Ali (@ali_charts) October 26, 2025
Despite fluctuating trading volumes, Solana’s strength remains supported by institutional inflows from Fidelity and Grayscale. Additionally, a surge in developer activity is reviving Solana’s growth narrative, helping the network maintain its competitive position within the Layer-1 ecosystem.
The rebound in SOL reflects broader investor confidence in high-performance blockchain projects capable of scaling alongside rising adoption in DeFi and tokenization.
BNB and Other Altcoins Join the Rally
BNB also posted strong gains, rising to $1,136.70 with a 2.1% increase on the day. According to 10x Research, sovereign adoption initiatives in Kyrgyzstan, the potential for a VanEck BNB ETF, and higher DeFi total value locked (TVL) have all contributed to a robust performance across the Binance ecosystem.
The developments signal growing confidence in BNB’s multi-chain architecture and long-term viability as a core infrastructure asset within the crypto space.
Market Outlook: All Eyes on the FOMC
With the Federal Reserve’s next policy decision just days away, traders are bracing for heightened volatility across both Bitcoin and altcoin markets. A confirmed rate cut could inject additional liquidity into the system and accelerate capital flows into risk assets — especially crypto, which has historically thrived during dovish policy cycles.
At the same time, concerns about the U.S. fiscal outlook, coupled with lingering uncertainty from the government shutdown, continue to add a sense of urgency for investors seeking inflation-resistant alternatives.
If the Fed indeed delivers another rate cut, it could mark the beginning of a new liquidity-driven cycle — one that places Bitcoin, Ethereum, and other major cryptocurrencies firmly in the spotlight for the remainder of 2025.
In summary, Bitcoin’s surge past $114,000, Ethereum’s rebound above $4,000, and broad altcoin gains underscore growing optimism ahead of a potentially game-changing week for global markets. As liquidity expectations rise and institutional adoption deepens, the crypto market appears poised for another powerful rally.
