Fed Meeting: Rate Cuts Anticipated as Quantitative Tightening Ends

Key Takeaways

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  The Federal Reserve is expected to conclude quantitative tightening, with anticipated rate cuts following soon after.
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  These policy shifts are projected to foster a more favorable environment for increased risk appetite in the markets.
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  Crypto assets may experience a surge in activity and interest as liquidity is expected to ease.

Fed Policy Shift and Market Expectations

Major financial institutions including Bank of America, Goldman Sachs, and JPMorgan are forecasting that the Federal Reserve's upcoming October meeting will mark the end of quantitative tightening. Following this, the expectation is for the Fed to implement 25 basis point rate cuts. These decisions by the Federal Reserve are poised to significantly influence market dynamics, impacting asset valuations and overall investor sentiment, particularly within the cryptocurrency sector, as economic policies evolve.

End of Tightening and Anticipated Rate Cuts

Immediate policy adjustments are anticipated to include the cessation of quantitative tightening, which could affect funding conditions. Market participants are looking forward to lower borrowing costs and an increase in market liquidity, creating conditions conducive to heightened economic activity. This upcoming meeting highlights Fed Chair Powell's continued attention to the interplay between labor market and consumer data.

Market Reactions to Policy Changes

Analysts from firms like Goldman Sachs and JPMorgan predict that the conclusion of quantitative tightening could stimulate greater investor interest in riskier assets, such as cryptocurrencies. As of October 29, 2025, there have been no major official statements released by Fed leaders concerning these specific policy changes.

“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

Impact on Cryptocurrency Markets

Historically, periods of Federal Reserve rate cuts have correlated with increased activity within the cryptocurrency market. This often manifests as higher trading volumes and a rise in speculative investment, particularly in the wake of easing monetary policies.

According to CoinMarketCap, Bitcoin's trading volume over a 24-hour period has reached $63.01 billion, reflecting a 20.99% increase. The current price of Bitcoin is reported at $111,117.22, with its market capitalization surpassing $2.22 trillion. Recent data indicates a 3.49% decrease in price over the last 24 hours. Bitcoin's market dominance currently stands at 58.87%.

Analysts at Coincu suggest that anticipated rate cuts are likely to encourage a "risk-on" sentiment across financial markets, which could, in turn, boost demand for cryptocurrencies. Factors such as increased liquidity inflows and the historical patterns observed during previous rate cycles suggest a potential for growth in crypto assets, pending official policy announcements.