Fed Rate Cut Bets Lift BTC, TradFi Frets Over Margin Debt

On October 27, 2025, the crypto market experienced a significant boost as Bitcoin neared the $115,000 mark, reflecting a four-day increase from $108,000. Anticipation surrounding a potential Federal Reserve rate cut and ongoing discussions about the U.S.-China trade deal have increased investor appetite for risk assets. Notably, major inflows into digital asset products totaled $921 million last week, led by Bitcoin, although demand for Ethereum and XRP has seen a decline. Meanwhile, traditional financial markets are showing concern over retail investors’ increasing margin debt. In stablecoin developments, Western Union is planning a stablecoin settlement system to reduce reliance on traditional banking, while Japan's JPYC and Kyrgyzstan's new stablecoins mark growing interest in this sector. On the derivatives side, Bitcoin's implied volatility has decreased, indicating lowered market stress, even as options trading reflects a slight bearish bias. Overall, the crypto landscape is navigating a blend of optimism and caution, highlighted by the volatility and growth potential of various tokens.

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