Federal Reserve Set to Reduce Interest Rates by 25 Basis Points

According to CME’s ‘Fed Watch’, there is a 99% probability that the Federal Reserve will slash interest rates by 25 basis points in October 2025.

This anticipated monetary easing could incite asset redistributions, impacting major cryptocurrencies like Bitcoin and Ethereum, reflecting broader market sentiments and institutional strategies.

Federal Reserve’s Rate Cut Signals Major Market Shift

The Federal Reserve’s anticipated rate cut of 25 basis points presents a critical monetary policy shift with potential implications for the market. CME’s “Fed Watch” predicts an overwhelming likelihood of this change by October’s end.

Prominent reactions include insights from Binance Founder Changpeng Zhao, emphasizing security amid increasing scams targeting digital currency accounts.

“As the popularity of Meme coins rises, hackers are targeting social media accounts, using stolen accounts to post fake contract addresses. No official account will recommend or endorse specific Meme projects, urging users to stay vigilant to avoid asset losses due to clicking or interacting with unknown contracts.” — Changpeng Zhao (CZ), Founder, Binance

Rate Cuts Historically Boost Cryptocurrency and DeFi Activity

Did you know? Historically, Fed rate cuts have sparked increased investments in digital assets, spurring DeFi activity as capital searches for better returns in lower interest environments.

As of October 20, 2025, Bitcoin (BTC) is priced at $110,871.63, with a market cap of $2.21 trillion, according to CoinMarketCap. Its circulating supply stands at 19,936,690 BTC, nearing its max supply of 21 million. Recent price changes show a 2.97% increase over the past 24 hours.

Coincu research team’s analysis suggests that the expected rate cuts could drive more investors toward cryptocurrencies, leveraging new technological integrations and evolving market dynamics as key factors. This perspective aligns with past trends where monetary easing has elevated digital asset adoption.