The next Federal Open Market Committee (FOMC) Meeting It’s fast approaching and bets are already coming in on what it would mean for the Bitcoin and cryptocurrency industry. The last FOMC meeting took place in September, when the Federal Reserve ended up cutting rates to 4-4.25% after months without cuts. With this setting the tone, expectations that another rate cut could be on the way are growing stronger, with the FedWatch tool showing a high percentage.
The market expects another rate cut to 3.75-4%
The next FOMC meeting is scheduled for Wednesday, October 29, 2025, and there is already a lot of clamor around what the Federal Reserve plans to do. Current market headwinds point to a favorable outcome for risk assets like Bitcoin and other cryptocurrencies, with rate cuts expected.
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Currently, the CME FedWatch Tool is showing that the probability of a rate cut has increased to 98.3% at the time of writing. This leaves only a 1.7% chance that the Fed will actually leave rates at their current levels, and there is zero chance of a rate hike.
A reduction in rate cuts is good for all businesses, as lower interest rates mean better lending terms and higher spending and borrowing. Therefore, it will increase participation in markets, from consumer goods to the stock market, and then make its way to newer markets such as Bitcoin and cryptocurrencies.
Expectations for Bitcoin and cryptocurrencies are increasing
A rate cut by the Federal Reserve aligns with the more pro-crypto stance the United States has been taking since President Donald Trump was elected. Last week, the president pardoned founder and former CEO of crypto exchange BinanceChangpeng Zhao, after previously pleading guilty to money laundering violations in 2024. Zhao has since served a four-month sentence before Trump’s pardon came.
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Now that the United States is embracing Bitcoin and cryptocurrencies again, a rate cut will only further the rise, allowing more investors to enter the market as liquidity is released. The initial announcement is known to have caused a rapid rise in the market. But as the news becomes clearer, the cryptocurrency market is expected to continue rising in response.
However, nothing is certain until the FOMC meeting is over and the announcement is made. For him Bitcoin and cryptocurrency market To remain bullish, inflation will also have to reduce, as a rise could trigger more conservative stances from investors.
Featured image of Dall.E, chart from TradingView.com
