Federal Reserve’s FOMC Meeting Signals Potential Policy Adjustments

2 mins mins

Key Points:

The Federal Reserve’s FOMC meeting is expected to address interest rates and economic recovery.
Market anticipates potential changes to policy wording regarding inflation.
Crypto markets, including BTC and ETH, may respond to liquidity shifts.

The Federal Reserve will announce its interest rate decision at 02:00 Beijing time on Thursday, influencing economic policy under Chair Jerome Powell’s leadership, followed by a press briefing.

This decision could impact cryptocurrency markets, affecting liquidity and risk assets, with potential rate cuts likely influencing Bitcoin and Ethereum valuations.

Bitcoin Market Volatility in Response to Rate Decisions

Reactions have been varied. Fed Governor Michele Bowman may suggest a 50-basis-point rate cut, deviating from consensus. Kansas City Fed President Jeffrey Schmid, known for his hawkish stance, may oppose any rate cut. Markets are monitoring these debates closely as they anticipate possible influences on crypto markets, including leadership remarks.

For more details on the Federal Reserve meeting timings and agendas, refer to the FOMC Meeting Calendars and Schedules.

Bitcoin (BTC) currently trades at $113,208.73 with a market cap of formatNumber(2257562667870, 2) USD, capturing 59.13% dominance as reported by CoinMarketCap. Within the past 24 hours, BTC fell by 1.09% despite a 4.70% surge over the past week. Alongside BTC’s near-19.94 million circulation, market anticipation remains significant, fueled by trading volumes increasing by 37.6%.

Market Insights and Future Implications

Did you know? Historically, Federal Reserve interest rate decisions often pre-empt intensified crypto market activity, with Bitcoin benefiting during liquidity-easing measures, as seen during the 2020 COVID-19 response.

According to Coincu researchers, the interest rate decision could influence short-term liquidity conditions and may increase crypto market volatility. Should Powell announce further cuts, Bitcoin and Ethereum could continue to experience demand growth, aligning with improved stances on DeFi activity and layered token performances.

bitcoin-daily-chart-4010 — Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 13:01 UTC on October 29, 2025. *Source: CoinMarketCap*

The latest data related to economic indicators can be found in the Federal Reserve H.15 Release.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.