Bitcoin Jumps $2K Before FOMC — Is This the Start of a Major Rally?

Bitcoin (BTC) clawed back toward $114,000 Wednesday, up roughly $1,800 from 24-hour lows near $112,200, as traders dialed up bets on a dovish Federal Open Market Committee (FOMC) tilt that could ignite the next bull leg. With the Fed’s rate decision just hours away at 2 PM ET – widely priced for a 25-basis-point cut to 3.75%-4% – optimism swirls around Chair Jerome Powell’s post-meeting clues on 2026 easing, potentially unlocking fresh liquidity for risk assets like crypto.

The rebound follows a choppy session: BTC dipped below $112,500 early amid $523 million in liquidations – mostly longs – but rebounded on short-covering and institutional inflows. Spot Bitcoin ETFs notched $202 million net buys Tuesday, per CoinShares, while on-chain metrics flash green: Active addresses jumped 15% to 1.2 million, and whale wallets (1K+ BTC) scooped 2,500 coins, signaling accumulation. “This pre-FOMC pump looks like classic positioning – if Powell nods to more cuts, $115K-$118K is in play,” said CryptoQuant analyst Ki Young Ju. Ethereum (ETH) mirrored the move, up 1.5% to $4,016, buoyed by ETF approvals and DeFi TVL topping $150 billion.

Yet, caution lingers. Bitcoin’s RSI at 53.5 hints neutral momentum, while a hawkish surprise – downplaying further easing amid sticky 3% inflation – could test $110K support, filling a CME gap. “Volatility’s the name of the game; 70% of FOMC days see 3-5% swings,” warned Glassnode’s Ryan Lee. Global cues add fuel: A weakening DXY at 103.9 and steady 4.28% 10-year yields bolster the risk-on vibe, echoing September’s post-cut 10% BTC spike.

| Metric | Value | 24h Change |
|——–|——-|————|
| BTC Price | $114,000 | +1.6% |
| Market Cap | $2.26T | +1.2% |
| 24h Volume | $67.8B | +5% |
| ETF Inflows (Oct 28) | $202M | +12% |

Analysts like VanEck’s Matthew Sigel eye $143K by year-end if cuts cascade, dubbing this the “liquidity trap breakout.” With open interest at $39 billion on CME, the stage is set: Dovish vibes could propel BTC past $120K resistance, validating the bull cycle’s next chapter. Hawkish headwinds? A swift retrace to $109K looms. As Powell speaks at 2:30 PM ET, all eyes on the Fed’s inflation-growth tightrope.