The next Federal Open Market Committee (FOMC) meeting is approaching, and bets are already pouring in on what it will mean for Bitcoin and the crypto industry. The last FOMC meeting was held in September, when the Fed finally decided to cut interest rates to between 4% and 4.25% after not cutting rates for several months. This has raised expectations that further interest rate cuts could be made, with the FedWatch tool showing a high percentage.
Market expects further rate cut to 3.75-4%
The next FOMC meeting is scheduled for Wednesday, October 29, 2025, and there is already a lot of buzz about what the Fed is planning. Current market headwinds indicate that interest rate cuts are expected, a favorable outcome for risk assets such as Bitcoin and other cryptocurrencies.
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Currently, CME is fedwatch tool This indicates that the probability of a rate cut has increased to 98.3% at the time of writing. Therefore, there is only a 1.7% chance that the Fed will actually keep interest rates at their current levels, and no chance that they will raise them.
Less interest rate cuts are good for all businesses because lower interest rates mean better lending terms and more spending and borrowing. Therefore, we will see increased participation in markets from consumer goods to stock markets, as well as new markets such as Bitcoin and cryptocurrencies.
Increasing expectations for Bitcoin and virtual currencies
The Fed’s interest rate cuts are in line with the more crypto-friendly stance the United States has taken since the election of President Donald Trump. Last week, the president pardoned Chao Changpeng, the founder and former CEO of cryptocurrency exchange Binance, who pleaded guilty to money laundering violations in 2024. Mr. Zhao then served a four-month term until he was pardoned by President Trump.
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As the US embraces Bitcoin and cryptocurrencies once again, rate cuts will further fuel the rally and free up liquidity, allowing more investors to enter the market. Initial announcements are known to cause a rapid rise in the market. However, as the news settles, it is expected that the crypto market will continue to rise accordingly.
However, nothing is certain until the FOMC meeting is over and an announcement is made. For Bitcoin and the crypto market to remain bullish, inflation must also fall. This is because rising inflation rates may cause investors to become more conservative.
Featured image from Dall.E, chart from TradingView.com
