- Fed rate cut odds for October now stand at 98.3%.
- Lower rates may drive fresh capital into crypto markets.
- Investors expect a recovery after recent crash.
Fed Rate Cut Imminent: What It Means for Crypto
In a dramatic shift in monetary policy expectations, the odds of a U.S. Federal Reserve rate cut in October have surged to 98.3%, according to market data. This comes at a critical time for the crypto market , which just experienced one of its steepest drops in 2025.
The potential rate cut could act as a major bullish trigger, injecting optimism and liquidity back into both traditional and digital asset markets. For crypto investors shaken by recent losses, this shift in Fed sentiment is exactly the kind of news they’ve been waiting for.
Why Lower Interest Rates Matter for Crypto
The Federal Reserve’s interest rate decisions have a direct impact on risk assets like Bitcoin , Ethereum , and altcoins. When rates are high, borrowing becomes expensive, and investors typically flock to safer assets like bonds.
However, lowering interest rates usually has the opposite effect:
- Increased liquidity: Cheaper borrowing leads to more cash in circulation.
- Risk-on appetite returns: Investors seek higher returns in assets like crypto.
- Weaker dollar: Often boosts Bitcoin and other non-fiat stores of value.
With the Fed now almost certain to ease policy, the crypto market may be set for a strong rebound.
A Possible Turning Point After the Crash
Following last week’s shocking crash—where top coins like $LINK, $ADA, and $ATOM lost up to 80%—this rate cut news could mark a turning point. Traders are already positioning for a bounce, anticipating that the flow of new capital will fuel the next bullish leg.
While nothing is guaranteed, the combination of oversold conditions and a likely Fed pivot may create ideal conditions for a crypto recovery in Q4.
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