The U.S. Federal Reserve has started easing, cutting interest rates by 25 basis points on October 29, 2025. This change sets the new federal funds target range at 3.75% to 4.00%. It is the first rate cut since 2023 and indicates the end of quantitative tightening by December 1.
The Fed’s decision marks a significant shift in policy, moving from fighting inflation to promoting growth. Although inflation is still slightly above the 2% target, officials noted that price pressures are easing, labor data is softer, and there are growing risks to economic growth as reasons for the cut.
Market reactions were quick. Analysts at Nomura expect the Fed to hold off on additional rate cuts in December. They believe that the recent move matches the data showing moderation without significant weaknesses in the labor market. Fed Chair Jerome Powell also hinted that any further easing will depend on new data and agreement within the FOMC, indicating caution amid economic uncertainty.
In the crypto market, optimism grew. Bitcoin (BTC) showed strength despite its ups and downs, supported by solid demand and steady inflows into U.S.-listed ETFs. Market strategists noted that these inflows, which have now topped $6 billion this month, reflect rising confidence among institutional investors.
Experts think that with leverage reduced, policy easing in progress, and institutional demand rising, conditions might come together for Bitcoin to potentially reach $150K. The outlook as we approach year-end looks more positive, especially since macroeconomic tailwinds and investor involvement continue to back digital assets.
However, sentiment remains careful, with the Crypto Fear and Greed Index at 32. This shows that while fundamentals are getting better, strong bullish momentum may take time to develop fully.
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