The U.S. Federal Reserve has officially entered a new phase of monetary easing — and investors worldwide are watching closely to see how this shift could reshape global markets, especially Bitcoin.
Fed Cuts Rates by 25 Basis Points
On October 29, the Fed lowered interest rates by 0.25%, setting a new target range of 3.75–4.00%. It also confirmed that quantitative tightening (QT) will end on December 1, marking a major pivot in U.S. monetary policy. This move — the first rate cut since 2023 — signals a transition from fighting inflation to supporting growth and market stability.
While inflation remains above the 2% target, policymakers pointed to slowing price pressures, weaker labor market data, and rising downside risks for the economy as key reasons behind the decision.
Nomura and 21Shares React
Financial powerhouse Nomura quickly revised its outlook, saying it now expects the Fed to keep rates unchanged in December, reversing its earlier forecast of another cut.
“Economic data will likely remain soft, but not enough to alarm the FOMC,” Nomura said.
Fed Chair Jerome Powell also warned that further easing this year is “not guaranteed,” citing disagreements among policymakers and gaps in economic data.
Meanwhile, Matt Mena, crypto strategist at 21Shares, offered a bullish outlook:
“Bitcoin’s resilience amid tightening liquidity shows that structural demand — fueled by ETF inflows and a more dovish policy outlook — remains strong. The end-of-year setup for digital assets looks increasingly constructive, setting the stage for a potential move toward $150,000 Bitcoin.”
Bitcoin Holds Strong
Despite recent market volatility, Bitcoin (BTC) has maintained its footing. In October alone, U.S.-listed Bitcoin ETFs attracted over $6 billion, pushing global crypto ETF assets under management to $300 billion.
Meanwhile, government selling pressure on seized BTC has eased, and institutional interest continues to grow — particularly from pension funds and long-term allocators. This mix of macro stability and inflows provides fertile ground for another major rally.
Fear Persists — But So Does Opportunity
The Crypto Fear & Greed Index currently stands at 32, signaling cautious sentiment among investors. While short-term volatility may continue, the underlying fundamentals suggest growing momentum for a strong year-end performance.
As one Nomura analyst put it:
“The Fed may calm the markets temporarily, but Bitcoin is starting to write its own macro story.”
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