๐ Rate Cut Expectations:-
โข High Probability of Rate Cut:
Futures markets now price a 97.3% chance of a 25 bps rate cut at this monthโs FOMC meeting โ signaling near-consensus among traders.
โข Powell Balancing Act:
With no fresh data due to the shutdown, Powellโs team is flying blind โ policy by instinct, not evidence.
๐๏ธ Impact of the U.S. Government Shutdown:-
โข Data Drought:
The shutdown has halted key releases, including the September jobs report, leaving the Fed effectively โblindfoldedโ in its decision-making.
โข Economic Sentiment Weakens:
Unemployment has climbed to 4.3%, the highest since 2021, while ADP recorded 32,000 private-sector job losses in September.
โข Public Mood:
According to Pew Research, 74% of Americans describe current conditions as โfair or poor.โ
Political paralysis and fiscal deadlock have created the same conditions that triggered cross-asset volatility in previous cycles.
๐ข Macro Voices & Political Pressure:-
โA lack of fresh data means the Fed canโt confirm the labor market remains on solid ground,โ โ Krishna Guha, Evercore ISI.
โPersistent inflation, resilient demand, and only modest labor market slack suggest policy is barely restrictive,โ โ Lorie Logan, Dallas Fed President.
โEach rate cut weakens the dollarโs moral authority โ bullish for Bitcoin, terrifying for policymakers,โ โ Macro Trader, Singapore.
Former President Donald Trump has also demanded near-zero interest rates if reelected. Powellโs term ends May 2026, which adds further political undertones to every move the Fed makes.
๐ช Bitcoin New Dance with the Fed:-
โข Accumulation Trend Rising:
Glassnode data shows exchange outflows up 9% week-on-week, confirming deep conviction among long-term holders.
โข DeFi Expanding Rapidly:
Total Value Locked (TVL) across DeFi platforms now sits at $82.5 billion, up 11% month-on-month, with Ethereum and Solana leading inflows.
โข Macro Rotation:
With gold hitting $3,900 and the Nikkei up 4.3%, Bitcoin is increasingly viewed as part of the new global triad of safe havens โ Gold, Stocks, and Code
๐ Market Snapshot (as of October 7, 2025)
โ
Bitcoin (BTC): $123,957
โ
24h Change: +0.85%
โ
Intraday High: $126,157
โ
Intraday Low: $123,373
โ
Market Cap: ~$2.45 trillion
โ
Mood: Risk-on sentiment ahead of the FOMC meeting
๐ฎ Analystโs Outlook โ 3 Crypto Predictions Ahead of FOMC
1๏ธโฃ Powell Cuts, Markets Roar:
๐ธ A 25 bps cut could ignite a liquidity surge โ lifting BTC, ETH, and DeFi assets as real yields compress.
๐ธ Expect renewed flows into tokenized RWA projects and stablecoin ecosystems.
2๏ธโฃ Shutdown Pressure Builds:
๐ธThe longer the data drought, the higher the policy risk โ and the sharper the volatility.
๐ธ Institutions could expand crypto hedges to navigate uncertainty.
3๏ธโฃ Crypto Takes the Macro Stage:
๐ธBitcoinโs role shifts from โalternative assetโ to macro barometer.
๐ธIf Powell cuts without clarity โ risk assets pump, credibility burns.And crypto thrives on that chaos.
๐ง Final Thoughts:-
๐จ๏ธ The setup is historic โ a blind Fed, a divided government, and a crypto market loaded with conviction.
๐จ๏ธ Each cut buys time but sells trust, pushing capital toward decentralized stores of value.
๐จ๏ธ Bitcoin next leg may not depend on adoption โ but on how fast Powell prints.
๐ฌ If Powell blinks, liquidity flows.
๐ฌ If the data dies, volatility reigns.
๐ฌ Crypto doesnโt wait for clarity โ it trades the chaos.
Note: Data verified as of October 7, 2025. Market conditions and probabilities are subject to change. Always conduct independent analysis before making investment decisions.
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