The Federal Reserve is anticipated to reduce interest rates by 25 basis points in October 2025, with a 96.7% probability of this action at the upcoming meeting. Historical trends show that previous rate cuts in September and November 2024 led to significant rallies in Bitcoin and Ethereum, with both cryptocurrencies achieving double-digit gains. However, subsequent cuts in December 2024 and September 2025 resulted in weaker or negative market responses, as the easing measures were already factored into market expectations.
The potential rate cut in October 2025 may not replicate the earlier positive outcomes for Bitcoin and Ethereum. Factors such as current market sentiment, regulatory developments, and global economic risks could influence the market's reaction, potentially limiting the impact of the Fed's monetary policy decision on these leading cryptocurrencies.
Upcoming Fed Rate Cut May Have Limited Impact on Bitcoin, Ethereum
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