Next Meeting of the Federal Open Market Committee (FOMC). is fast approaching and bets are already pouring in on what this would mean for the Bitcoin and crypto industries. The last FOMC meeting took place in September, when the Federal Reserve finally cut rates to 4-4.25% after months without rate cuts. Now that the tone has been set, expectations that a new rate cut is on the way are becoming louder, with the FedWatch Tool showing a high percentage.
The market expects a new interest rate cut to 3.75-4%
The next FOMC meeting is scheduled for Wednesday, October 29, 2025, and there is already a lot of buzz about what the Fed plans to do. Current market headwinds point to a favorable outcome for risk assets such as Bitcoin and other cryptocurrencies, with interest rate cuts expected.
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Currently the CME FedWatch tool shows that the probability of a rate cut has risen to 98.3% at the time of this writing. This leaves only a 1.7% chance that the Federal Reserve will actually leave rates at current levels, and zero chance of a rate hike.
A reduction in interest rate cuts is good for businesses around the world because lower interest rates mean better lending conditions and more spending and borrowing. Thus, it will increase participation in the markets, from consumer goods to the stock market, and then make its way into newer markets such as Bitcoin and crypto.
Expectations for Bitcoin and Crypto are increasing
An interest rate cut by the Federal Reserve is in line with the more pro-crypto stance the United States has taken since President Donald Trump was elected. Last week the president pardoned the founder and former CEO of the crypto exchange BinanceChangpeng Zhao, after previously pleading guilty to money laundering offenses in 2024. Zhao has since served a four-month term before Trump’s pardon.
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As the US embraces Bitcoin and crypto again, a rate cut will only fuel the rise, allowing more investors to enter the market as liquidity frees up. The initial announcement is known to trigger a rapid rise in the market. But as the news takes hold, the crypto market is expected to continue rising in response.
However, nothing is certain until the FOMC meeting is completed and the announcement is made. For the Bitcoin and crypto market To remain bullish, inflation will also have to be reduced, as an increase could lead to more conservative views among investors.
Featured image of Dall.E, chart from TradingView.com