Bitcoin Price Climbs 1% As Fed Chair Jerome Powell Signals Another Rate Cut

The Bitcoin price climbed over 1% in the past 24 hours to trade at $112,675 as of 5:42 a.m. EST on trading volume that surged 14% to $84.6 billion.

Sentiment was boosted by comments from Fed Chairman Jerome Powell that suggested the central bank is ready to cut interest rates again later this month.

Powell said in Philadelphia on Tuesday that “the downside risks to employment have risen,” the strongest hint yet that Fed officials think they have enough evidence to back another quarter-point cut to US borrowing costs.

Powell’s comments suggest that the Fed chair is becoming more dovish on monetary policy, even as some economists worry that the US government’s tariff policy will spur another bout of inflation across the US economy.

The next FOMC meeting takes place on October 28-29 and investors have bet heavily on another quarter-point cut.

Powell said on Tuesday that longer-term inflation expectations remained “aligned with our 2 per cent goal”.

Meanwhile, the US has become one of the largest BTC holders in the world, with its reserves now exceeding 327,000 Bitcoin tokens worth more than $37 billion.

This milestone follows the Justice Department’s latest seizure of 127,271 BTC, roughly $15 billion, from Chinese businessman Chen Zhi, marking the biggest cryptocurrency confiscation in American history.

Bitcoin Price Analysis: Channel Support Holds As Bulls Attempt A Rebound

The BTC price is currently trading near $112,675 as the broader technical structure still shows resilience within a rising channel pattern that has guided price action since April 2025.

The Bitcoin price has recently tested the lower boundary of this rising channel, coinciding with the 200-day simple moving average (SMA) near $107,000, a strong support zone. The bounce from this area suggests that buyers are defending the medium-term uptrend.

The 50-day SMA, currently positioned around $114,464, is slightly above the spot price and acts as a short-term resistance level.

A decisive daily close above this SMA would likely confirm renewed bullish momentum toward the mid-channel area near $118,500, and potentially the upper Bollinger Band at $128,000, which also aligns with the upper channel resistance.

The Bollinger Bands (BB) have moderately widened, signaling heightened volatility after a period of compression earlier in October. The recent dip touched the lower band near $109,000, which typically marks a potential short-term oversold condition within an ongoing uptrend.

BTC’s current price is hovering between the middle and lower Bollinger levels, suggesting that Bitcoin is attempting to stabilize after a sharp retracement.

Meanwhile, the Relative Strength Index (RSI) at 43.35 lies just below the neutral 50 mark, reflecting weakening bullish momentum but not an outright bearish trend.

Should Bitcoin maintain support above $109,000 and break back above $114,000–$115,000, the next target could be the upper channel resistance near $126,000–$128,000.

On the other hand, if the BTC price fails to hold above the 200-day SMA, it might trigger a more extended correction towards the previous support around $100,383.