Global markets are holding their breath as the U.S. Federal Reserve prepares to deliver one of its most closely watched decisions of the year.

The outcome of today’s Federal Open Market Committee (FOMC) meeting could redefine short-term momentum across risk assets — from Wall Street stocks to Bitcoin — as investors await clarity on interest rates and the possible end of quantitative tightening.

Markets Pause Ahead of the Fed

Bitcoin drifted slightly lower to around $113,000, trimming earlier gains, while gold climbed back above the $4,000 threshold as traders positioned defensively ahead of the announcement. Despite near-universal expectations of another 25-basis-point rate cut, investors are focusing on what comes next — particularly hints from Fed Chair Jerome Powell about policy plans for December and beyond.

The broader macro backdrop remains tense. Inflation appears to be easing after last week’s consumer price data showed a weaker-than-expected rise, though annual CPI still crept up to 3%. Meanwhile, the U.S. government shutdown continues to delay economic reports, forcing traders to rely heavily on Powell’s remarks for direction.

The Speech That Matters

While the rate cut itself is mostly priced in, Powell’s tone could determine how markets react. Analysts expect him to address the Fed’s balance sheet strategy and possibly hint at winding down the quantitative tightening program, which has drained liquidity from financial markets since 2022.

Wall Street strategist Nick Timiraos described the Fed’s position as “looking for an exit ramp in the dark,” suggesting that officials are ready to slow QT but uncertain about how quickly to proceed. Any indication of an earlier-than-expected end to QT could reignite risk appetite across equities, crypto, and commodities.

The Fed will publish its policy statement at 2:00 PM ET, followed by Jerome Powell’s press conference at 2:30 PM ET, both streamed live on the Federal Reserve’s website and YouTube channel. Updated economic projections and the committee’s implementation note will also be released simultaneously.

Tomorrow at 2:30 p.m. ET: Chair Powell hosts live #FOMC press conference: https://t.co/fXt6ew9fZ8 pic.twitter.com/eodOpS0HV0

— Federal Reserve (@federalreserve) October 28, 2025

Bitcoin Traders Brace for Volatility

Crypto analysts are warning of heightened turbulence during the event. Michael van de Poppe expects Bitcoin’s short-term swings to accelerate, advising traders to avoid excessive leverage. He believes BTC remains undervalued compared to traditional assets and sees dips near $112,000 as potential accumulation zones before a recovery toward $123,000.

Analyst Ted Pillows offered a more cautious outlook, pointing out that Bitcoin faces resistance near $116,000 and risks filling a CME gap at $111,000 if selling pressure intensifies. A sustained move above $113,500, he said, would be the key signal confirming a return of bullish momentum.

The Macro-Crypto Crossroads

The Fed’s actions today could shape the final weeks of 2025’s fourth quarter. If Powell signals a pause in tightening or an earlier end to balance sheet reductions, liquidity-sensitive assets such as Bitcoin could find renewed strength heading into November. Conversely, any hawkish tone might trigger another round of profit-taking before the next leg higher.

For now, all eyes turn to Washington — where a few words from Jerome Powell could determine the next big move across global markets.