Bitcoin Attempts $112K Breakout as Fed Rate-Cut Chances Surge Over 98%

Bitcoin is pushing against the $112,000 resistance as the weekly close approaches, sparking optimism among traders for potential new local highs.

Highlights:

Bitcoin is displaying increased volatility as it climbs through the $112,000 resistance.
Traders anticipate new local highs as the BTC price continues to recover.
The US Federal Reserve is forecasted to lower interest rates again next week.

Bitcoin (BTC) is making a charge toward $112,000 into Sunday’s weekly close, with traders optimistic about new local highs.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

Bitcoin Targets Traders’ Goals Amid Fresh Volatility

Data from Cointelegraph Markets Pro and TradingView show that Bitcoin price action was contained through the weekend.

A rebound late on Friday lifted traders to higher levels within the week, buoyed by positive US inflation data.

“Holding my long over $108,200. Targeting $113,000 highs next.” — Crypto Tony (@CryptoTony__) on Twitter (October 26, 2025).

Trader Crypto Caesar noted the retesting of the $112,000 resistance level:

“A CLEAN break and close above it could confirm a bullish continuation toward $123K,” he wrote in a post on X.

BTC/USDT perpetual contract one-day chart. Source: Crypto Caesar/X

The Fed’s Rate-Cutting Prospects Enhance Risk Appetite

The upcoming week presents another significant event for risk-asset investors.

The Federal Reserve, buoyed by lower-than-expected inflation figures, is projected to lower interest rates by 0.25% during their meeting on October 29.

With the probability of this outcome exceeding 98%, evidenced by data from CME Group’s FedWatch Tool, confidence among traders appears to be growing.

Fed rate probabilities for October FOMC meeting (screenshot). Source: CME Group

As mentioned by trading resource The Kobeissi Letter, the Fed’s cuts form part of a global trend among central banks to ease rates.

“So far, 82% of world central banks have cut rates over the last 6 months, the highest share since 2020. This century, central banks have slashed rates at a pace only seen during recessions,” The Kobeissi Letter noted.

“Global monetary easing is in full swing.”

This article does not provide investment advice. All trading carries risk, and readers are advised to do their research before making investment decisions.