The crypto market is entering a potentially decisive phase as investors track four developments that could shape sentiment for the rest of 2025.
Experts anticipate a possible end to the Federal Reserve’s tightening campaign and a wave of pending ETF decisions that could widen institutional access to digital assets.
Federal Reserve Chair Jerome Powell suggested this week that the central bank’s balance sheet runoff, known as quantitative tightening, may be nearing its conclusion.
Speaking at the National Association for Business Economics conference, Powell noted that bank reserves were approaching an ample level, hinting that quantitative tightening could end in the coming months. Markets interpreted the comments as a sign that liquidity conditions could soon ease, a scenario historically supportive for risk assets like Bitcoin and Ethereum.
Adding to the optimism, Fed Governor Michelle Bowman reaffirmed the likelihood of two interest rate cuts before the end of 2025, saying the labor market’s slowdown justifies a gradual policy pivot.
 
Investors view such a shift as a green light for growth sectors. “When the Fed begins an easing cycle, bonds in the middle of the curve, around three to seven years, often strike the right balance of income and protection,” said Gargi Pal Chaudhuri, Chief Investment and Portfolio Strategist Americas at BlackRock.
Another major catalyst looms on the regulatory front. The U.S. Securities and Exchange Commission faces final deadlines this month for 16 crypto-linked exchange-traded funds (ETFs), covering tokens such as Solana, XRP, Litecoin, and Dogecoin.
Bloomberg’s James Seyffart and ETF Store president Nate Geraci have called October a make-or-break period for the sector, with approval of even a handful of products expected to unlock fresh institutional inflows.
Together, the potential end of quantitative tightening, prospects of rate cuts, and mounting anticipation over ETF approvals are forming a rare alignment of bullish factors for digital assets. As industry analyst Lark Davis put it, you might be missing what’s coming next if you “still think the crypto market has topped.”
Source: https://zycrypto.com/crypto-market-players-are-anticipating-these-4-bullish-events-heres-why/