Federal Reserve Nears Decision on Interest Rate Cuts Amid Divergence

Key Points:

  • Upcoming Fed minutes expected to clarify committee divisions on rate cuts.
  • Crypto markets prepare for potential impacts of looming monetary policy.
  • BTC, ETH, and altcoins show increased activity on anticipation of rate changes.

The Federal Reserve is nearing possible rate cuts, as anticipated in the upcoming meeting minutes, which will outline prevailing opinions among officials, released Thursday in Beijing time.

Interest rate cuts could impact crypto markets, potentially increasing activity in Bitcoin and Ethereum, as historical precedents show adjustments in monetary policy often influence digital asset behavior.

September Minutes to Reveal Fed’s Rate Cut Deliberations

Jerome Powell, Chair, Federal Reserve, remarked, “Considerable uncertainty remains, and our dual mandate sides are somewhat in tension; we must balance risks of cooling job growth against persistent inflation.”

Bitcoin (BTC) stands at $122,412.68 with a market cap of $2.44 trillion (CoinMarketCap). Recent price alterations include a 4.35% weekly rise, reflecting the continuous adjustments in trader expectations. The crypto sector often responds dynamically to potential monetary easing, as evidenced during prior Fed rate adjustments. The Coincu research team highlights that market reactions to Fed policies can influence volatility and asset allocation. Historical trends indicate potential benefits for crypto assets should the Federal Reserve opt for monetary easing. This may lead to increased on-chain activity and a stronger market sentiment.

Crypto Market Reacts to Anticipated Monetary Easing

Did you know?
During the 2020–2021 rate cuts, Bitcoin reached all-time highs due to favorable market conditions, demonstrating the significant impact of Federal Reserve policy shifts.

Recent price alterations include a 4.35% weekly rise, reflecting the continuous adjustments in trader expectations.


bitcoin-daily-chart-3627
Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 14:54 UTC on October 8, 2025. Source: CoinMarketCap

The Coincu research team highlights that market reactions to Fed policies can influence volatility and asset allocation.

Source: https://coincu.com/markets/fed-approaches-interest-rate-cuts/