Bitcoin Updates: Fed’s Softer Stance Supports Both Economic Expansion and Inflation—Positive Momentum for Crypto
- The U.S. Federal Reserve cut rates by 25 bps to 3.75%-4.00% on October 29, 2025, ending quantitative tightening by December 1, easing liquidity constraints. - Crypto markets initially dipped post-announcement but gained analyst support as lower rates and weaker dollar historically boost Bitcoin and Ethereum as hedges. - Institutional crypto demand remained strong with Coinbase reporting 2,772 BTC inflows and Bitcoin ETFs seeing net inflows, while Tether's USDT supply surpassed $183 billion. - The Fed's "
The U.S. Federal Reserve's move to lower interest rates by 25 basis points on October 29, 2025, had a significant impact on global financial markets, with digital assets such as
Prior to the announcement, crypto markets experienced heightened volatility and initially dropped as investors reacted by "selling the news," according to
The Fed's latest policy reflects mounting worries about a slowing job market and economic headwinds, even as inflation approaches the 2% target. With unemployment climbing to 4.3% and some economic indicators delayed due to a government shutdown, the central bank opted for a "measured and adaptable" easing strategy, according to analysts at
Institutional interest in cryptocurrencies remained strong.
Looking forward, investors will pay close attention to the Fed's December meeting for indications about the trajectory of further rate reductions. If a third cut occurs in 2025 alongside the official end of QT, it could further boost crypto through increased liquidity. Nevertheless, potential risks persist. A shift back to a more hawkish policy or unexpected inflation could spark renewed volatility, especially as geopolitical and regulatory uncertainties linger.
At present, the Fed's recent moves have strengthened the perception of a supportive policy environment, positioning crypto to benefit from lower yields and a weaker dollar. As one analyst remarked, "The Fed is no longer solely prioritizing inflation control but is now also addressing economic vulnerabilities—a change that may provide fresh momentum for Bitcoin and Ethereum."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Skims Appoints Beauty Lead to Champion Diversity, Signaling Industry Move Toward Black-Owned Brand Innovation
- Skims hires Ami Colé founder Diarrha N'Diaye as beauty EVP, signaling industry recognition of Black-owned brands' role in driving inclusivity and innovation. - N'Diaye's appointment follows Ami Colé's 2025 shutdown due to unsustainable costs, yet its legacy of inclusive products and community focus left lasting industry impact. - Skims Beauty aims to extend size/shade inclusivity to cosmetics, leveraging N'Diaye's melanin-rich skin expertise and prior experience at L'Oréal/Glossier. - The move highlights
AlphaTON Connects Conventional Finance and Web3 through DeFi, Artificial Intelligence, and TON Payment Solutions
- Brittany Kaiser, AlphaTON CEO, will address DeFi, tokenization, and digital asset treasuries at SALT London 2025, aligning with the firm's mission to bridge institutional finance and blockchain ecosystems. - AlphaTON raised $71M to expand its TON ecosystem footprint, including GPU investments for Telegram's Cocoon AI network and validator operations in DeFi and gaming protocols. - The firm launched a TON Mastercard with PagoPay and ALT5 Sigma, enabling crypto spending at 60+ million merchants, while deve
Bitcoin Updates: Bitcoin Lending Evolves with Lava Introducing an Affordable and Flexible Credit Line
- Lava secures $200M to launch BLOC, a Bitcoin-backed credit line with 5% interest and no monthly payments. - The product allows instant borrowing against 50% of Bitcoin's value via self-custody wallet, blending DeFi and traditional finance. - Innovations include liquidation protection and 7% annual cost, positioning Lava as a low-cost lending alternative amid Bitcoin's $108k surge. - Market growth highlighted by Fold's crypto rewards partnership and regulatory challenges like Singapore's $150M fraud freez
Ethereum News Update: Tokenized Treasury Assets Surpass $8.6 Billion While Banks Manage Operational Challenges Amid Collateral Transition
- Ethereum's 2025 Fusaka upgrade (Dec 3) introduces 12 EIPs, including EIP-7594, to enhance scalability and security through sampled blob validation. - On-chain fees hit $19.8B in 2025 (35% YoY growth), driven by DeFi (63% share) expanding into DePINs and consumer apps. - Tokenized U.S. Treasuries exceed $8.6B as banks test collateral workflows, despite higher operational risks compared to traditional repos. - AI adoption in blockchain development (50% production use) and cybersecurity ($22.97B 2030 market
Trending news
MoreCrypto prices
More
