91% Probability of Another Rate Cut: Is This Cryptocurrency’s Recovery Catalyst?

Central banks keep slashing rates—digital assets poised for liftoff.

The Monetary Domino Effect

When traditional finance cuts borrowing costs, investors scramble for higher-yielding alternatives. Cryptocurrencies stand ready to capture the overflow.

Liquidity Tsunami Incoming

Rate reductions flood markets with cheap capital. That excess liquidity historically fuels risk-on assets—and Bitcoin's track record during easing cycles speaks volumes.

The Institutional Pivot

Hedge funds and corporate treasuries now treat crypto as legitimate portfolio diversification. Another rate cut accelerates their allocation timelines.

Deflationary Assets Shine

While central banks debase fiat currencies, fixed-supply cryptocurrencies gain appeal. Digital gold narratives strengthen with every basis point reduction.

Traditional finance keeps playing checkers while crypto plays 4D chess—rate cuts just expose the mismatch faster.

Will Another Interest Rate Cut Push The Cryptocurrency Market?

The latest cryptocurrency market crash could be due to increased volatility arising from monetary policy uncertainties. The week is filled with key economic events that could shape how the market behaves over the coming weeks.

According to CME FedWatch, there is a 91.9% chance that the Federal Reserve will introduce another 25 basis point interest rate cut in October. Rate cuts have often led to market rallies as borrowing becomes easier. A similar pattern was observed last week after the Fed’s first interest rate cut in 2025. Another rate cut could lead to the cryptocurrency market entering another bull run.

Apart from the possible interest rate cut, October has historically been a bullish month for the cryptocurrency market. The pattern could continue in 2025 as well. Moreover, a dovish stance from the Federal Reserve will further boost chances of a market rally.

Bitcoin (BTC) is the market leader, and other cryptocurrencies often follow its trajectory. According to CoinCodex, BTC will recover over the coming weeks, hitting a new all-time high of $140,802 on Dec. 21, 2025. Hitting $140,802 from current price levels will entail a rally of about 25.29%.

BTC entering a bullish phase will most likely lead to other assets experiencing respective rallies as well. How the market unfolds over the coming days will most likely set the tone for the rest of the year.