The cryptocurrency market is posting a significant rally this Monday, October 27, increasing its total capitalization by 3.3% to nearly $4 trillion. Bitcoin (BTC) is leading the advance, surpassing $115,500. The primary reasons for the crypto market rally are attributed to growing expectations of a rate cut by the U.S. Federal Reserve.
The positive momentum is widespread, with 90 of the top 100 cryptocurrencies showing gains in the last 24 hours. Bitcoin (BTC) advanced 3.4%, currently trading at $115,583. Meanwhile, Ethereum (ETH) experienced a notable increase of 6.1%, reaching $4,194. This bullish move is also reflected in the Fear & Greed Index. The indicator moved out of the “fear” zone (32 points) and returned to a “neutral” sentiment at 42 points, suggesting renewed investor confidence.
The main force behind this rebound appears to be the macroeconomic environment. Investors are watching key policy meetings this week, especially from the U.S. Federal Reserve (Fed). There is a high probability, estimated at 98%, that the Fed will announce a 25-basis-point interest rate cut this Wednesday. Furthermore, a potential easing of trade tensions between the United States and China has improved risk appetite.
Is this the beginning of a sustained year-end rally?
Analysts are observing these signs with cautious optimism. David Siemer, CEO of Wave Digital Assets, noted that if rate cuts are confirmed and capital inflows continue, “we could look at a meaningful move upward” toward the year’s end. Gadi Chait of Xapo Bank reinforced this idea. He stated that “capital continues to flow toward Bitcoin, recognising its growing role as a resilient anchor asset.” Although the reasons for the crypto market rally are varied, ETF flows show mixed data. U.S. spot BTC ETFs saw net inflows of $90.6 million on Friday, while ETH ETFs registered outflows.
Technically, Bitcoin remains above key support levels. Experts suggest a break above $116,000 could lead the price toward the $117,000-$119,800 zone. Kyle Chassé of MV Global summarized the current sentiment. He commented that “pullbacks happen; the trend is up” as the global economía adjusts to a potential monetary easing cycle. The market now awaits confirmation from the Fed to define its direction in the final quarter of 2025.
