Crypto traders remained on edge as they await Fed Chair Powell’s speech following the FOMC meeting set to wrap up later today.
Summary
- Fed Chair Jerome Powell is set to deliver a speech on the Fed’s latest policy decision and economic outlook later today.
- CME’s FeWatch tool shows odds of a 25bps cut at 99.9%.
- Bitcoin and major crypto assets experienced modest losses over the past 24 hours.
According to data from crypto.news, the total crypto market cap slipped 1.2% to around $3.9 trillion, with most major tokens posting mild losses.
At press time, Bitcoin (BTC), the world’s largest cryptocurrency, traded near $113,446, up 5% over the past week but down 0.6% in the last 24 hours. Ethereum (ETH) hovered around $4,017, down 2.3%, while Solana (SOL) and Binance’s BNB fell 3.6% and 1.1%, respectively.
XRP (XRP) managed to stay in positive territory at $2.63, extending its strong seven-day rally as traders rotated into higher-volume tokens.
Crypto investors are currently in wait-and-watch mode, as they await Federal Reserve Chair Jerome Powell’s policy statement, which will follow after the conclusion of the two-day FOMC meeting that began on Oct. 28.
At press time, the Crypto Fear & Greed Index stood neutral at 51, just one point higher than yesterday, signaling little change in market mood. Data from CoinGlass shows that open interest across major exchanges fell by 1.34% to $163 billion, while total liquidations climbed to about $521 million, mostly from over-leveraged long positions.
Following the FOMC meeting, the Federal Reserve will release its policy statement at 6:00 p.m. UTC, outlining the committee’s latest decision on interest rates and economic outlook. This will be followed by a press conference at 6:30 p.m. UTC, where Powell is expected to provide further clarity on the Fed’s stance.
The entire event will be live-streamed on both the Federal Reserve’s official website at federalreserve.gov and its official YouTube channel.
Crypto traders are almost certain that the Fed will cut rates today. According to the latest data from CME’s FedWatch Tool, the odds of a rate cut in October have surged to an overwhelming 99.9%. This sharp jump came after Friday’s CPI data came in softer than expected, which reinforced hopes that the Fed may ease up on its tightening cycle.
Today, market participants will be closely monitoring Powell’s comments for any hints of future policy direction, especially the chances of another rate cut by the end of 2025. At the time of writing, the odds of a cumulative 75 basis point reduction by December have climbed to around 86%, poll data from Polymarket show.
For now, a measured 25 basis point cut in today’s announcement would likely reinforce the Fed’s commitment to a data-driven approach, which could benefit risk assets like Bitcoin, which tend to rally on rate cuts.
On the flip side, if the Fed decides to keep rates unchanged, crypto investors may be left disappointed after building up strong expectations for a cut. This, in turn, could expose cryptocurrencies like Bitcoin to short-term volatility.
