Asia Market Open: Crypto Rally Stalls as Bitcoin Sinks Below $113K Ahead of Fed Rate Call

Good morning, Asia. Here’s what’s moving before the bell.

Bitcoin lost steam into the Asia session, down 1.1% to $112,806 as traders trimmed risk before the Fed’s rate decision later today. The pullback cooled a recent crypto rebound even as regional equities climbed on AI optimism.Market snapshot

• Bitcoin: $112,806, down 1.1%
• Ether: $4,016, down 2.1%
• Solana: $194.64, down 3.3%
• Total crypto market cap: $3.8 trillion, down 1.4%

Asia is taking its cue from Wall Street. Tech optimism carried over after Microsoft struck a deal to let OpenAI restructure as a public benefit corporation while taking a 27% stake, and that lifted sentiment across the region.

You can see it in the price action, as MSCI Asia ex-Japan nudged higher, Japan’s Nikkei jumped more than 1% to fresh records, and Korea’s Kospi hit an all-time high thanks in part to upbeat results from SK Hynix, a key Nvidia supplier.

Futures are mixed into Europe and the US, with Nasdaq a touch firmer and Euro Stoxx 50 a bit softer.Fed Rate Cut Looms as Markets Brace for Policy Signals on Liquidity

The real hinge today is rates. Markets have almost fully priced a 25-basis-point Fed cut. The dollar has eased on the view that more cuts could follow, and traders will listen closely for any hint that the Fed might slow or stop balance-sheet runoff, which would matter for liquidity.

BREAKING: 98% chance of a 25 bps Fed rate cut tomorrow2% chance of a 50 bps cut. — Kalshi (@Kalshi) What to watch from the Fed

US Federal Reserve Chair Jerome Powell is expected to announce a rate cut today as the two-day FOMC meeting wraps up. The meeting runs Oct. 28–29, with Powell set to release the decision today at 2 pm ET, followed by a press conference at 2:30 pm ET.

Markets will parse the statement and Q&A for guidance on the path of rates and quantitative tightening.

Ryan Lee, chief analyst at Bitget, described the Fed’s expected 25-basis-point rate cut to a range of 3.75% to 4% as a move that could inject fresh liquidity into crypto markets.

“Easing borrowing costs typically boost risk appetite, and this could channel fresh capital into assets like Bitcoin and Ethereum, sparking 5%–10% short-term rallies,” he said. “As investors seek higher returns, we may also see capital rotation from safer assets into major altcoins like SOL and XRP, reinforcing crypto’s appeal as both a growth play and inflation hedge.”BOJ Decision, Fed Rate and Big-Tech Results Form This Week’s Macro Crosscurrents

In FX, the yen firmed about 0.3% after US officials amped up warnings about Japan’s ultra-low rates. The Bank of Japan is up tomorrow, and most expect no change.

Earnings add another layer. We’re heading into the busiest stretch with Microsoft, Apple, Alphabet, Amazon and Meta all reporting, exactly the balance sheets that have steadied risk this year.

For crypto desks, those same macro levers decide the next move, the rate path, the tone of US-China talks, and mega-cap results.

With Bitcoin hovering under $113K, the question is whether a dovish Fed and tech strength can restart the bid, or if traders stay cautious until the dust settles.