US: Fed cuts interest rates again, will bitcoin and cryptocurrencies benefit?

Good news (we hope). Although the market bitcoin (BTC) and cryptocurrencies have so far struggled to recover significantly, the US Federal Reserve ( Fed ) can give it a boost. Indeed, after resuming the reduction of interest rates by the US central bank on September 17, it will happen again on October 29, 2025. Jerome Powell head of the Fed, gave way and lowered his institution’s interest rates by another 25 basis points .

Key points of this article:

• The US Federal Reserve once again lowered interest rates by 25 basis points, bringing them below 4%.
• Such looser monetary policy could fuel a surge in Bitcoin, which has already hit a new all-time high despite an uncertain economic climate.

The Fed again cuts interest rates by 25 basis points, bringing them below 4%. After Jerome Powell stubbornly kept the Federal Reserve’s key interest rates unchanged with December 2024 against the advice of President Donald Trump himself, he finally did for the first time capitulated September 17, 2025, cutting those famous rates by 25 basis points.

And, as market participants expected, on Wednesday, October 29, the Federal Open Market Committee ( FOMC ) decided again cut the Fed’s interest rates by 25 basis points . As such, these rates have fallen from a range of 4.00% to 4.25% to 3.75–4% .

And it can not be the last rate cut in 2025, as the majority of financial players surveyed for the tool FedWatch from CME Group, expect the latest Fed rate cut at the next FOMC meeting December 10 2025 year.

After months of persistently holding key interest rates at their positions, the Fed made two consecutive cuts.

An increasingly adaptive policy that should help Bitcoin grow This news was well received in the crypto community, as this rate cut by the US Federal Reserve signals a more flexible monetary policy . This, in turn, favors risky assets, such as stocks and cryptocurrencies.

After the resumption of interest rate cuts on September 17, bitcoin rises to new all-time high (ATH) . The price of BTC has reached 126,000 dollars despite apprehensions about the start termination of work of the US government, which partially paralyzed the work of federal agencies.

With the Fed’s just-announced decision on the latest rate cut, it’s too early to say whether Bitcoin and other cryptocurrencies will benefit in the short term and recover immediately. However, according to some market analysts, the monetary policy of the central bank of the United States, which seems to become much more adaptive under the Trump administration maybe lead to Bitcoin’s value rising to $1 million in the coming years .

Source: journalducoin.com