Fed Chairman Powell Signals Potential Rate Cut, Crypto Markets May See Bullish Trends

Federal Reserve Chairman Jerome Powell hinted at a possible U.S. interest rate cut, citing labor market pressures, during remarks on October 14, 2025.

Dovish signals from Powell led to bullish sentiment in crypto markets, boosting flows into Bitcoin and Ethereum, with slight upticks observed in stablecoin exchanges and DeFi platforms.

Fed's Powell Hints at Possible Rate Cut Amid Labor Concerns

The probability of a rate cut by the Federal Reserve has mobilized investor sentiment, with market analysts suggesting upward pressure on risk assets such as Bitcoin (BTC) and Ethereum (ETH). On-chain data reflecting increased stablecoin inflows into exchanges supports this notion. Additionally, DeFi platforms saw new deposits, particularly in USDT and USDC pairs.

Prominent figures within the crypto community reacted, emphasizing potential market rallies. Arthur Hayes, Co-Founder of BitMEX, said, "Another Fed rate cut on the horizon? Prepare for the liquidity pump."

Raoul Pal of Real Vision echoed similar sentiments on increased buy pressure for major cryptocurrencies.

Historical Precedents Point to Crypto Market Rally

Did you know? In March 2023, the Federal Reserve's rate cut triggered a Bitcoin rally, similar signals now point to potential gains in the crypto market.

According to CoinMarketCap, Bitcoin (BTC) has a current price of $112,423.65 with a market cap of $2.24 trillion. BTC dominates 58.50% of the market. The trading volume of $93 billion reflects a 24-hour negative change of -0.50%, while the past 30 days show a -3.13% fall.

The Coincu research team highlights that dovish signals from the Fed might encourage more capital movement into riskier assets, including cryptocurrencies. Historically, similar Fed actions have precipitated substantial liquidity influxes into assets such as Bitcoin and Ethereum. This cyclical trend supports a potential rally in the minor crypto sectors, aligning with market expectations.