Stablecoin Inflows Rise Before Fed Rate Decision

On October 29, 2025, Bitcoin trades around $113,000, experiencing a 1.4% drop over 24 hours, while the overall crypto market, indicated by the CoinDesk 20 index, decreased by 2%. Traders are moving towards stablecoins ahead of a near-certain 25 basis point interest-rate cut by the Federal Reserve, with high probabilities suggested by market tools. Centralized exchanges are seeing reduced liquidity, with order book depths down to 40% of pre-liquidation levels. However, stablecoin supplies are increasing for the first time since September, indicating macroeconomic conditions are favorable. Perpetual futures funding rates for major tokens are once again positive, and there’s a gradual rebuilding of BTC and ETH open interests. Analysts note that supportive factors like cooling inflation and anticipated Fed policies could signal a substantial market upturn, despite potential uncertainties from geopolitical events. Key upcoming events include Grayscale's Solana Trust ETF listing and the Federal Reserve's interest-rate decision.

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