Key Points:
- •Powell signals support for a 25 bp rate cut.
- •US labor market shows weakening signs.
- •Crypto assets could benefit from dovish Fed policy.
Federal Reserve Chairman Jerome Powell indicated potential support for a further rate cut due to weakening US labor market signs, reported the Financial Times on October 15th.
A dovish monetary shift could boost risk assets like BTC and ETH, reflecting increased liquidity conditions and investor enthusiasm for cryptocurrencies.
Powell's Rate Cut Signal and Crypto Market Outlook
Federal Reserve Chairman Jerome Powell hinted at a possible rate cut due to increased risks to the US labor market. This suggestion was made despite the current absence of new Labor Department data, reflecting his cautious stance due to the government shutdown.
Fed's dovish tilt suggests easing borrowing conditions, possibly influencing investment flows into risk assets like cryptocurrencies. Institutional and retail investors might reassess market strategies, anticipating higher US dollar liquidity.
Crypto markets have historically reacted positively to such monetary shifts. No direct responses have been observed from key figures or regulatory bodies yet, leaving the community speculating about potential market impacts.
Past Monetary Policy and Future Economic Considerations
Did you know? During past monetary policy shifts, such as the Fed's dovish pivot in March 2023, crypto prices, including BTC and ETH, saw significant upticks, paralleling expectations for higher liquidity from rate cuts.
As of October 14, 2025, Bitcoin (BTC) is priced at $112,853.87. With a market cap of 2,249,674,951,918, it dominates 58.53% of the market. Recent 24-hour trading volume reached 89,508,335,664.88, reflecting an 8.68% rise. Despite current challenges, BTC's 60-day price change shows a 4.07% decrease (CoinMarketCap).
The Coincu research team highlights that prolonged dovish trends could further bolster risk asset rallies, potentially accelerating cryptocurrency adoption. Analysts caution, however, that regulatory uncertainties and global economic conditions remain pivotal in shaping crypto markets.