Rate Cuts Anticipated as Quantitative Tightening Ends

Bank of America, Goldman Sachs, and JPMorgan anticipate the Federal Reserve’s October meeting to end quantitative tightening, with expected 25 basis point rate cuts starting thereafter.

The Fed’s decisions could impact market dynamics, influencing asset prices and investor sentiment, especially in cryptocurrencies like Bitcoin and Ethereum, amid changing economic policies.

Federal Reserve Plans End to Tightening and Cuts Rates

Immediate changes include the cessation of quantitative tightening, possibly affecting funding conditions. Investors anticipate lower borrowing costs and heightened market liquidity, setting a climate for increased economic activity. The meeting underscores Powell’s focus on labor-consumer data dichotomies.

Market reactions vary as analysts from Goldman Sachs and JPMorgan predict quantitative tightening’s end could spark increased investor interest in higher-risk assets, including cryptocurrencies. No major official statements from Fed leaders as of October 29, 2025.

“The FOMC’s policy is nearing a neutral level, and the conclusion of QT is pivotal for future economic stability.”
— David Solomon, CEO, Goldman Sachs

Cryptocurrency Markets Brace for Possible Uptick

Did you know? Historically, Federal Reserve rate cuts have spurred activity in the cryptocurrency market, leading to increased trading volumes and speculative inflows, particularly following the easing policies.

CoinMarketCap reports Bitcoin’s 24-hour trading volume reached $63.01 billion, marking a 20.99% change. The current BTC price stands at $111,117.22 with a market cap exceeding $2.22 trillion. Recent price changes show a 3.49% drop over 24 hours. Bitcoin’s market dominance is 58.87%.

Coincu analysts predict rate cuts will encourage risk-on behavior in financial markets, potentially raising cryptocurrency demand. Factors such as liquidity inflows and historical rate cycles suggest crypto assets’ value could climb, pending with federal-reserve-50-basis-point-cuts official policy announcements.