Bitcoin Tests Uptober Momentum Amid Fed Meeting Looms

Bitcoin's October performance is being closely watched by traders and investors as it approaches the one-year anniversary of its brutal crash in 2025. At $87,100, Bitcoin has entered October with a different setup compared to last year's devastating event that wiped out nearly $19 billion from the market.

The cryptocurrency has already shown signs of strength, reaching a high of $87,000 on October 2 and forcing bearish positions out of the market. Over $120 million in Bitcoin shorts were liquidated during this advance, with total crypto liquidations reaching about $210 million.

One key factor that could shape Bitcoin's performance is the Federal Reserve's upcoming meeting on October 27-28. With recent comments from Fed officials reducing expectations for another interest rate increase at this meeting, a less restrictive rate outlook could support risk assets and improve liquidity conditions.