FedWatch Predicts Imminent 25 Basis Point Rate Cut

According to BlockBeats News on October 18, 2025, CME’s “FedWatch” data indicates a 99% probability of a 25 basis point Federal Reserve rate cut in October.

This strong expectation signals potential market volatility, impacting cryptocurrency prices and possibly leading to increased liquidation activities across major digital assets.

FedWatch’s High Probability Rate Cut Assessment

CME’s “FedWatch” tool registers a near-certainty in an impending 25 basis point rate cut by the Federal Reserve. Interest in monetary policy shifts has heightened among traders, gearing up for potential economic shifts. As the Fed’s decisions loom, the cryptocurrency market anticipates a considerable impact, riding on the coattails of anticipated macroeconomic changes. Financial analysts observe that the potential rate cut aligns with strategies to spur economic growth. Meanwhile, the cryptocurrency market prepares for adjustments, notably amid recent price swings in Bitcoin and altcoins. Expert commentary highlights potential advantages in risk management as investments adjust to these expectations. Eugene Ng Ah Sio, a trader, conveyed an unequivocal stance of caution, expressing doubts over an immediate market rebound. His remarks echo sentiments prevalent among industry watchers, wary of the possible prolonged downturn affecting altcoins.

As the situation evolves, traders are closely monitoring the macroeconomic indicators that could influence the Federal Reserve’s decision-making process, particularly in relation to cryptocurrency investments.

Eugene Ng Ah Sio, Trader, stated, “I anticipate the cryptocurrency market will continue to decline rather than rebound, particularly affecting altcoins.”

Cryptocurrency Market Faces Impending Volatility and Instability

Did you know? Over similar periods, rate cut anticipations have historically led to short-lived rallies, ensuing volatility, and extended declines. Such scenarios notably affect Bitcoin and high-beta altcoins, revealing an acute sensitivity to macro policy shifts.

According to CoinMarketCap, Bitcoin (BTC) currently holds a price of $106,999.16, with a market cap of formatNumber(2133180212506, 2) and a dominance nearing 58.82%. The digital currency experienced a 24-hour trading volume of formatNumber(50974434036, 2), despite shedding 9.03% over 30 days and 9.89% over the past 90 days.

Insights from the Coincu research team suggest ongoing regulatory and market uncertainties might fuel volatility in cryptocurrencies. As historical data shows, such dynamics have contributed to periodic price instability, directly tying market behavior to emerging macroeconomic policies. Market observers note that active strategies are pivotal to navigate the recurring shifts in the cryptocurrency landscape.