The crypto market is looking ahead to a potentially positive November, though the U.S. Federal Reserve’s latest interest rate cut has yet to provide a clear boost for Bitcoin. Fed officials remain divided over whether to implement another cut in December — a factor that could determine future liquidity flows into digital assets.
Fed’s Rate Cut Decision and Its Immediate Impact on Crypto
The Federal Reserve recently announced a 25-basis-point rate cut, lowering the federal funds rate to 3.75%–4%.
Because the move was fully anticipated by investors, market reactions remained muted:
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Bitcoin dropped about 2.4% following the Fed’s announcement.
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Digital asset prices stayed flat or declined slightly, as markets had already priced in the policy change.
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Fed Chair Jerome Powell revealed internal divisions within the FOMC over whether to continue monetary easing in December.
According to Matt Mena, an analyst at 21Shares, the lack of surprise “kept the crypto market reaction subdued,” with limited volatility and cautious sentiment dominating the landscape.
Fed Division Becomes a Barrier to Crypto Liquidity
Some FOMC members have taken a more hawkish stance, warning that aggressive easing could reignite inflation.
This division makes it difficult for markets to expect a new wave of liquidity — a key catalyst that typically drives up Bitcoin and other risk assets.
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Michael Pearce, Deputy Chief U.S. Economist at Oxford Economics, noted that “hawkish signals from several regional Fed presidents” highlight growing internal tensions.
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As a result, capital inflows into cryptocurrencies may shrink, reducing buying pressure for Bitcoin and Ethereum.
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Historical data shows that divided Fed committees often correlate with 15–20% lower average returns for equities and alternative assets in the following quarter.
Experts warn that without strong policy consensus, the crypto market will struggle to gain short-term momentum. Investors are advised to:
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Closely monitor upcoming inflation reports and FOMC meeting minutes.
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Diversify portfolios to reduce exposure to policy-driven volatility.
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Avoid overestimating the bullish effects of rate cuts while the Fed remains deeply divided.
In summary, while the recent rate cut offers short-term relief for crypto investors, the Fed’s internal split has cast a shadow over Bitcoin’s near-term recovery prospects.
