Bitcoin Retraces Nearly Half Its Losses From October Crash Amid Fed Rate-Cut Expectations

Why It Matters

The outcome could amplify flows into crypto assets if Fed-cut optimism persists, but policy disappointment would likely reverse gains sharply.

Summary

Bitcoin rallied past the $112,000 resistance over the weekend, trading around $113,724 and breaching the $113,000 level for the second time this week as it retraced nearly half of the losses from October’s crash. The move—which saw a comparable print to Oct. 21’s $113,678—has been linked to growing market expectations of upcoming Federal Reserve rate cuts. Traders and investors are interpreting the rebound as renewed risk appetite in crypto markets and a sensitivity to macro policy shifts, boosting short-term upside potential while leaving volatility risks intact. The outcome could amplify flows into crypto assets if Fed-cut optimism persists, but policy disappointment would likely reverse gains sharply.