Federal Reserve Poised for Major Interest Rate Cuts

CME’s “Fed Watch” indicates a 99.5% chance of a 25 basis point interest rate cut by the Federal Reserve in October 2025, affecting cryptocurrency markets globally.

These potential rate cuts could influence Bitcoin (BTC) and Ethereum (ETH) prices, sparking investor interest and possibly affecting portfolio strategies and market dynamics.

Federal Rate Cuts Set to Reshape Market Strategies

The upcoming Federal Reserve interest rate cuts highlight CME’s “Fed Watch” tool insights. In October, a 25 basis point reduction is almost certain, while the probability for a cumulative 50 basis point cut by December stands at 91.6%.

Market impacts include Bitcoin and Ethereum movements, with institutional investors likely adjusting portfolios. The cryptocurrency space typically responds positively to rate reductions, promoting speculation on rising asset values.

“Our Fed Watch tool reflects market expectations and can guide investors.” – Representative, CME Group

Bitcoin’s Surge During Monetary Easing: A Historical Perspective

Did you know? During the 2019 monetary easing cycle, Bitcoin surged more than 200%, demonstrating significant investor optimism in response to Fed easing policies.

Bitcoin’s (BTC) current price is $112,624.29 with a market cap of approximately 2.25 trillion, dominating 59.25% of the cryptocurrency market, according to CoinMarketCap. Over the past 90 days, BTC reflects a -4.96% change, with a notable 4.12% increase in the last week.

The Coincu research team highlights the potential for renewed interest in decentralized finance (DeFi). Rate cuts could reinvigorate activity in DeFi protocols, paralleling previous patterns where lower rates influenced greater capital inflows into alternative and high-risk assets.