Bitcoin hovered around $114,000 on Monday after briefly testing recent highs, as traders positioned cautiously ahead of a Federal Reserve meeting expected to deliver the second rate cut of the year. The broader crypto market tracked lower in tandem, with all major tokens in mild decline. Ether ETH$4,118.47 fell 2.6% to $4,115, while Solana’s SOL and Binance’s BNB each slipped around 2%. The week’s early softness followed a strong weekend, when bitcoin rallied from $104,800 to nearly $116,000 on optimism around U.S.–China trade talks and improving global risk sentiment. “Bitcoin’s recovery underscores renewed institutional inflows and long-term conviction,” said Lacie Zhang, research analyst at Bitget Wallet. “Open interest climbing from $25 billion to nearly $30 billion reflects fresh leverage entering the market — a double-edged sword that could amplify upside momentum above $112K but heighten liquidation risks below $110K,” Zhang added. The setup mirrors a familiar dynamic from earlier this month, where renewed leverage chasing modest strength, only to meet resistance near $117,000–$120,000. Still, traders appear far less fearful than during the October selloff that triggered a record $19 billion in liquidations. According to data from CoinGlass, open interest and funding rates across major exchanges remain elevated but stable, suggesting that traders are not overextended heading into the policy week. The Federal Open Market Committee (FOMC) meets on Oct. 28–29, with markets widely expecting a 25-basis-point cut to the 4.00%–4.25% range. Analysts see it as the clearest signal yet that the Fed is pivoting toward easing, even as inflation remains slightly above target. “Powell is likely to emphasize a> “The crypto market has positively shaken off its fears,” said Alex Kuptsikevich, chief market analyst at FxPro. “Bitcoin rose above $116K on Monday morning, pushing off the 200-day MA as support. The $117K–$120K area remains strong resistance, but a sustained breakout could renew highs.” Despite optimism, long-term holders continue trimming exposure. On-chain data from OnChainSchool shows that coins dormant for over seven years have been moving at the fastest pace on record, signaling some profit-taking by early adopters. Altcoins were mixed in early Asia hours. XRP traded near $2.65, Solana’s SOL hovered around $202, and DOGE$0.2010 slipped 3%. TRX$0.2978 was the lone laggard, down 1.4% over 24 hours. With Fed week underway and risk appetite creeping back, markets appear to be shifting from fear to patience. The next directional move — up or down — will likely depend less on policy surprises and more on how traders handle the leverage they’ve just rebuilt.