How the Crypto Market Could React to the Upcoming Fed Meeting on October 29

The crypto market is holding its breath ahead of the U.S. Federal Reserve’s meeting on October 29. Investors have long anticipated that the Fed will cut interest rates by 25 basis points, which could paradoxically trigger a short-term selloff once the decision becomes official.

The “Buy the Rumor, Sell the News” Risk According to analyst Ali Martinez, the expected rate cut is already priced in. If the Fed follows through, the market might respond with profit-taking — the classic “sell the news” scenario. A similar pattern unfolded in September, when the crypto market lost over $60 billion within days after the Fed announced its first rate cut of the year. Analyst NekoZ noted that before that meeting, crypto markets had added more than $270 billion, showing how traders often buy ahead of the event and sell after confirmation. Bitcoin briefly hit a new all-time high before sliding lower — a pattern that could repeat after the October 29 meeting.

Long-Term Rate Cuts Could Fuel a Bitcoin Rally In the longer run, continued monetary easing could serve as a major catalyst for crypto growth.

Standard Chartered analyst Geoff Kendrick reaffirmed his bullish forecast, suggesting that Bitcoin could reach $200,000 by year’s end, driven by rate cuts and growing demand for Bitcoin ETFs. Lower interest rates typically make borrowing cheaper and liquidity more abundant — conditions that historically favor risk assets, including cryptocurrencies.

Key Triggers: U.S.–China Deal and End of the Government Shutdown Beyond the Fed, investors are closely watching two additional catalysts that could strongly influence the market: A potential trade deal between the U.S. and ChinaThe reopening of the U.S. government after a three-week shutdown

President Donald Trump confirmed he will meet with Chinese President Xi on October 31 during the APEC summit. The timing is critical — just one day before 100% tariffs on Chinese imports are set to take effect. If both nations move closer to an agreement, investor confidence could surge, sparking a strong crypto rally. Similarly, ending the government shutdown could ease market tension and fuel renewed optimism across risk assets.

Outlook The October 29 Fed meeting will be a crucial test of investor sentiment in the crypto space. While a short-term dip is possible due to profit-taking, rate cuts, diplomatic progress, and rising ETF inflows are laying the groundwork for Bitcoin’s next major bull run.

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