Investors in cryptocurrencies are closely watching the actions of the U.S. Federal Reserve (Fed). Amid slowing employment growth and declining inflation pressures, the Fed is expected to cut its interest rate by 25 basis points, bringing it to a range of 3.75–4.00% annually. According to FedWatch, the probability of this move is nearly 99%, making it almost certain for financial markets.
Lower interest rates traditionally encourage investment in riskier assets. For cryptocurrencies, this means a potential increase in demand, as lower returns on bank deposits and bonds make digital assets more attractive. In early October, Bitcoin has already shown impressive growth: BTC price increased by more than 9%, reaching around $120,000. Experts link this surge to expectations of further dollar weakening and Fed monetary easing.
At the same time, lower Fed rates create new opportunities for the crypto lending market. If borrowing rates in DeFi platforms remain relatively high, this could stimulate demand for such products, attracting institutional investors. As a result, user liquidity and platform activity will continue to support the market, providing additional upward pressure on cryptocurrency prices.
However, investors should remain cautious. Any unexpected changes in macroeconomic policies, rising inflation, or geopolitical events could quickly alter market dynamics. Nevertheless, the current economic environment in the U.S. creates favorable conditions for cryptocurrencies in October 2025.
The Fed’s expected rate cut opens new opportunities for the crypto market, increasing the attractiveness of digital assets and encouraging price growth. Bitcoin and other major cryptocurrencies are already showing positive momentum, while institutional interest makes the market outlook even more promising.
