Digital asset investment products saw $921 million in inflows last week. The surge was driven by renewed optimism over potential U.S. interest rate cuts, according to CoinShares. Softer-than-expected U.S. inflation data, including the recent CPI report, boosted hopes that the Federal Reserve may continue easing monetary policy.
So, is the FED going to cut rates?
Analysts expect the Federal Reserve’s FOMC rate cut announcement on Oct 29 at 2:00 p.m. ET to confirm a 25 bps reduction, largely anticipated by the market. However, experts say the real focus will be on Fed chair Jerome Powell’s speech at 2:30 p.m. ET, which could shape the next phase of the crypto market rally.
🇺🇸 The FED FOMC rate cut decision will be announced tomorrow at 2pm ET.
The market is expecting a 25 bps rate cut at this meeting, so it won’t impact the market much.
What’s even more important is Powell’s speech, which will start at 2:30pm ET.
The job market is already… pic.twitter.com/vb1D7dYLYU
— Ash Crypto (@Ashcryptoreal) October 28, 2025
Trading volumes for exchange-traded products (ETPs) stayed strong at $39 billion. This was above the year-to-date weekly average of $28 billion. Investors are closely monitoring the Fed interest rate meeting today for any hints on future Fed crypto rate cuts.
Also read: Fed Rate Cut Next Update 2025
Bitcoin Leads the Rally
Bitcoin captured nearly all inflows, drawing $931 million. Cumulative Bitcoin inflows since the Fed began cutting rates now total $9.4 billion, with year-to-date inflows at $30.2 billion. Ethereum experienced its first outflows in five weeks, shedding $169 million as investors rotated into Bitcoin. Solana and XRP saw smaller inflows, $29.4 million and $84.3 million, respectively, as traders await upcoming U.S. crypto ETF launches.
Regional Flows Highlight U.S. Strength
The United States dominated regional inflows with $843 million, while Germany posted $502 million, one of its strongest weeks on record. Switzerland recorded $359 million in outflows, attributed mainly to asset transfers rather than active selling. Smaller markets, such as Hong Kong, showed limited activity.
Investor Perspective: Long-Term Diversification
CoinShares head of research James Butterfill noted a shift in crypto investing motivations. “Diversification is now the top reason for investing, with speculation ranking fifth,” he said. Long-term Bitcoin holders have also increased from 50% in 2018 holding over 150 days to 75% today, highlighting the trend of using crypto as a store of value influenced by Fed policy and macroeconomic data.
Outlook: Stay Alert to Fed Rate Signals
Investors remain attentive to the next CPI report and Fed conference, as U.S. monetary policy continues to shape crypto market sentiment. While Bitcoin currently leads the inflows, broader market reactions to future Fed rate cuts or conference statements may impact altcoins and Ethereum-focused funds.
FAQs
1. Will a Fed rate cut affect crypto?
Yes. A Federal Reserve rate cut usually boosts liquidity in financial markets, encouraging risk-on sentiment. When borrowing becomes cheaper and yields fall, investors often move toward high-growth assets like Bitcoin and altcoins, seeking higher returns. Historically, crypto prices have shown upward momentum following dovish Fed decisions.
2. What happens when the Fed cuts rates?
When the Fed cuts interest rates, it lowers the cost of borrowing for banks, businesses, and consumers. This tends to stimulate spending and investment. For the crypto market, rate cuts often translate into increased capital inflows, stronger risk appetite, and renewed retail participation.
3. What is the Fed rate cut crypto today
The Fed rate cut news today has become one of the most-watched macro events for traders. Any signal of monetary easing or dovish commentary from Chair Jerome Powell tends to drive short-term volatility across Bitcoin, Ethereum, and other major cryptocurrencies.
4. Why so much hype around Federal Reserve interest rate cut 2025
In 2025, the Federal Reserve interest rate cuts are widely seen as a key turning point after months of tight monetary policy. Analysts expect the Fed to gradually unwind its quantitative tightening (QT) program and reduce rates further if inflation remains under control, a trend that could support broader crypto market recovery.
5. Will Bitcoin go up if the Fed cuts rates?
Historically, Bitcoin prices tend to rise following a Fed rate cut. Lower yields on traditional assets often push investors toward risk assets like BTC, viewed as a hedge against currency debasement and inflation. However, short-term reactions can vary depending on how dovish or cautious the Fed’s tone is.
6. How do Fed interest rates affect crypto?
Higher Fed interest rates usually strengthen the U.S. dollar and reduce liquidity, pressuring crypto valuations. Conversely, lower interest rates weaken the dollar, making crypto more attractive as an alternative investment. This correlation makes Fed policy updates one of the most important macro factors for crypto traders.
7. Fed interest rates chart
A Fed interest rate chart shows the historical changes in the U.S. federal funds rate, a key reference for understanding market liquidity cycles. Monitoring this chart helps traders gauge when conditions may turn favorable for risk assets like Bitcoin and Ethereum.
8. Fed crypto news today
The latest Fed crypto news today focuses on how U.S. monetary policy influences crypto flows, ETF demand, and stablecoin activity. Updates around FOMC meetings, inflation reports, and Powell’s speeches often act as catalysts for Bitcoin’s next major move.
