Bitcoin and Ethereum Slip as Fed Chair Signals Possible End to 2025 Rate Cuts

Bitcoin and Ethereum prices fell slightly after Fed Chair Jerome Powell hinted that the 25-basis-point rate cut in October might be the last of 2025, cooling investor optimism across global financial and crypto markets.

1. Fed’s “Pause” Message Sends Ripples Across Crypto Markets

On October 29, 2025, Federal Reserve Chair Jerome Powell drew global attention when he signaled that the 25-basis-point rate cut in October could be the last one of 2025.
The statement immediately impacted market sentiment, especially among crypto investors who are sensitive to interest-rate changes.

According to Binance data, Bitcoin fell 1.6% over the past 24 hours to trade around $111,000, while Ethereum, the world’s second-largest cryptocurrency by market cap, slipped about 2% to just above $3,900.
The total cryptocurrency market capitalization dropped 1.8%, wiping tens of billions of dollars in value in just a few hours.

Powell commented during his post-meeting press conference:

“There are strongly differing views among committee members, but there’s a growing chorus that maybe this is where we should at least wait a cycle.”

The remark was widely interpreted as a signal that the Fed may pause its monetary easing cycle, at least temporarily, to assess further data on inflation and employment.

2. Mixed Reactions in U.S. Markets, Clearer Impact on Crypto

While the S&P 500 finished the session nearly flat, the Dow Jones Industrial Average fell 0.2%, and the Nasdaq edged up 0.6%, boosted by gains in major tech stocks.
Yet the crypto market felt a more direct hit from the shift in tone, as traders reassessed liquidity expectations.

Alex Blume, founder and CEO of crypto asset manager Two Prime, told Fortune:

“Easing monetary conditions are supportive of upward price momentum for Bitcoin, so long as the macroeconomic outlook doesn’t pose unforeseen risks. Powell’s ‘pause’ message could slow short-term momentum.”

3. A Reminder of October’s Flash Crash

This week’s modest dip came just weeks after the October 10 flash crash, the largest crypto liquidation event ever recorded, when Bitcoin plunged nearly 10% and Ethereum tumbled 14% within hours.
According to data from CoinGlass, more than $19 billion in leveraged positions were wiped out that day.

The crash coincided with President Donald Trump’s threat to impose 100% tariffs on Chinese imports “over and above” existing ones, a move that sent shockwaves through global risk assets and erased $200 million from Bitcoin’s market cap alone.

Days later, Trump softened his stance on his social media platform Truth Social, writing:

“Don’t worry about China, it will all be fine! The U.S.A. wants to help China, not hurt it!!!”

His remarks helped calm markets, and crypto prices gradually stabilized, with Bitcoin hovering near $110,000 and Ethereum around $4,000 since mid-October.

4. Investor Caution Prevails Amid Lingering Uncertainty

Despite steady prices, traders remain highly cautious as macroeconomic and geopolitical crosswinds continue to shape sentiment.
If the Fed truly pauses rate cuts, the pace of liquidity growth could slow, putting near-term pressure on risk assets like Bitcoin and Ethereum.

However, the medium-term outlook remains constructive for several reasons:

Institutional demand is rising: Bitcoin spot ETFs and Ethereum futures products continue to attract new inflows.

Monetary policy remains accommodative: Even with a pause, real interest rates are low by historical standards, providing a tailwind for speculative assets.

The upcoming Bitcoin “halving” in early 2026 is expected to tighten supply and could serve as a longer-term bullish catalyst.

5. A Calm Before the Next Move

The latest decline in Bitcoin and Ethereum prices is less a sign of weakness than a reflection of markets entering a period of consolidation and reassessment.
After months of volatility, crypto traders appear to be waiting for clearer macro signals—from the Fed, from Washington, and from Busan.

At current levels—Bitcoin near $111,000 and Ethereum just below $4,000—the market seems to be building a base, preparing for its next decisive move once policy and geopolitical clouds clear.

FAQs

Q1: Why did Bitcoin and Ethereum fall after Powell’s comments?
A1: Powell hinted that the October rate cut might be the final one of 2025, reducing expectations for further monetary easing—a key driver of crypto’s recent strength.

Q2: Will the Fed actually stop cutting rates?
A2: Not necessarily. The Fed has emphasized a data-driven approach and will reassess inflation and employment figures in late 2025 before deciding whether to resume cuts.

Q3: Did the October 10 crash cause lasting damage to the crypto market?
A3: Not significantly. While it was the largest liquidation event ever recorded, the market quickly stabilized, suggesting it acted as a “reset” that purged short-term leverage.

Q4: What factors will determine crypto’s next trend?
A4: Key drivers include Fed policy decisions, the outcome of the Trump–Xi meeting, and institutional investment flows through Bitcoin ETFs and derivatives markets.