Federal Reserve Cuts Interest Rates to Combat Slowdown

The Federal Reserve, led by Chair Jerome H. Powell, cut interest rates by 25 basis points, reducing the benchmark rate to 3.75%-4%, the lowest in three years.

The rate cut, aiming to counter job growth slowdowns, may provoke market reactions, impacting assets like BTC and ETH amid increased liquidity.

Cryptocurrency Market Eyes Potential Surge Post-Rate Cut

The new rate range of 3.75%-4.00% represents the lowest in over three years. This change is expected to stimulate borrowing and investment by corporations and consumers. Widely deemed necessary, it addresses emerging economic threats from increasing unemployment.

“In support of its goals and in light of the shift in the balance of risks, the Committee decided to lower the target range for the federal funds rate by 1/4 percentage point to 3-3/4 to 4 percent… Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair…” — Jerome H. Powell, FOMC release, Oct 29, 2025

Market reactions were swift, with immediate attention from analysts and investors. Cryptocurrency leadership, represented by major coins like Bitcoin (BTC) and Ethereum, has yet to share official reactions, though market anticipation has shown a rise in stablecoin inflows, suggesting strategies pivoting towards anticipated volatility.

Market Data and Insights

Did you know?
In financial periods of reduced Federal Reserve rates, cryptocurrencies like Bitcoin often see resilient spikes in value, as observed in 2019-20, with surges following market adjustments.

Bitcoin (BTC), currently priced at $111,050.27 with a market cap of $2.21 trillion, exhibits notable movements. While experiencing a 1.86% decrease in the past 24 hours, its trading volume reached $61.81 billion—showing a 3.85% decline according to CoinMarketCap data.

Insights from the Coincu research team suggest potential regulatory responses may intensify as crypto market volatility increases. Historically, interest rate cuts have led to heightened cryptocurrency activity, creating essential discussions on future monetary policy implications and their technological applications.