Important points:
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Bitcoin once again reaches $116,000 amid increased volatility in the US trading session.
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Traders are divided on the near-term direction of Bitcoin’s price, with targets including $117,000 before the Federal Reserve’s interest rate decision on Wednesday.
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The latest CME futures gap is gaining popularity as a downside target.
Bitcoin (BTC) soared above $116,000 after the start of Wall Street trading on Tuesday as the cryptocurrency refused to halt its Uptober resurgence.
FOMC meeting increases BTC price volatility
Data from Cointelegraph Markets Pro and TradingView tracked BTC price rising 1.6% daily to $116,077 for BTC/USD on Bitstamp.
In an increasingly surprising move for traders, Bitcoin even bucked its trend of falling ahead of major US inflation events, in this case the Federal Reserve’s interest rate decisions.
The Federal Open Market Committee (FOMC) meeting on Wednesday was widely expected to cut interest rates by 0.25%, and markets were also closely watching Fed Chairman Jerome Powell’s language at his subsequent press conference for hints about the future course of policy.
“Bitcoin is doing very well so far.Bitcoin is holding up well here, with a slight retest after crypto trader, analyst, and entrepreneur Michael van de Poppe reacts to X.
“I think we’ll bottom out here today and start an uptrend for the rest of the week.”
In another post, Van de Poppe argued that the inverse correlation between Bitcoin and gold is fueling the rally. The former fell to $3,886 an ounce on the day, its lowest price since October 6th.
“Gold’s decline and consolidation is extremely bullish for risk-on assets, including altcoins,” he wrote.
Meanwhile, trader Kira had $117,000 in mind as part of the pre-FOMC local top until the price fell to close the gap near $111,000 in the recent weekend in the CME Group Bitcoin futures market.
you’re welcome. My LTF plan executed perfectly. Bullish statement on FOMC. pic.twitter.com/U2nsYJUrtv
— Killa (@KillaXBT) October 28, 2025
“As you can see, the difference in CME is not that far, so I think it will be difficult to cross this blue wall,” he wrote.
“However, it is likely that we will revisit 111.2K.”
$111,000 CME Gap Grows
Many market views still expected BTC prices to fall at some point before the Fed event.
Related: Bitcoin is ‘too expensive’ for retailers, threatening to end bull market cycle
Trader Bitbull flagged two areas of interest before BTC/USD hit a new all-time high: $106,000 and $110,000.
“I don’t expect the top for Bitcoin to come yet, but there is still a big rally left,” he told X followers.
As reported by Cointelegraph, concerns over a lack of trading volume and a divergence in bearish leading indicators continue to raise questions about whether the bull market can continue or whether new all-time highs can be reached.
This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making decisions.