Key Points
- •The Fed may cut interest rates in October, despite shutdown threats.
- •FedWatch shows a 96.7% chance of a rate cut.
- •Potential effects on crypto markets are being closely monitored.
According to CME's FedWatch tool, as of October 1, 2025, probability for a 25‑basis‑point interest rate cut by the US Federal Reserve had reportedly risen to 96.7%, despite a lack of official confirmation.
The expected rate cut could impact financial markets, notably cryptocurrencies, influencing asset valuations and investor sentiment amidst macroeconomic uncertainties and the anticipated US government shutdown.
Fed’s 96.7% Probability of Rate Cut Amid Shutdown Risks
Despite the possibility of a U.S. government shutdown, the likelihood of a rate cut by the Federal Reserve has risen significantly. Data from CME's FedWatch indicates a 96.7% probability, suggesting strong market expectations.
Interest rate adjustments can substantially influence financial markets, making this potential cut noteworthy. Indicative actions underscore trader sentiment that might propel risk assets like Bitcoin and major altcoins in a bullish trajectory.
Community reactions have been minimal thus far. While expert insights often guide market opinions, no statements have been made by prominent figures. Financial analysts and traders, however, continue to monitor the situation closely. Learn more about the impact of Federal Reserve rate cuts on crypto markets.
Crypto Market Watches Fed’s Rate Decision Impact on Prices
Did you know? Historical data shows, similar high Fed rate cut probabilities previously triggered positive shifts in Bitcoin prices, marking them significant events for crypto enthusiasts.
As of October 1, 2025, CoinMarketCap data shows Bitcoin (BTC) priced at $114,374.16 with a market cap nearing $2.28 trillion. The cryptocurrency exhibits a 24‑hour volume of $56.66 billion, demonstrating a 0.17% decrease. Price shifts show a 6.29% rise in 30 days, reflecting changing market dynamics.
According to Coincu research, a rate adjustment by the Federal Reserve may stimulate increased investment in cryptocurrencies. This trend might propel further interest in blockchain innovations as decentralized finance continues to see potential growth. Expectations center around market liquidity and technological advancements. To explore further, read about the broader implications of a Fed rate cut on crypto investments.