Federal Reserve Rate Cut Looms: Trump Signals Market Shakeup by Year-End

U.S. President Donald Trump announced on October 27, 2025, that the Federal Reserve is likely to make key decisions on interest rates before the year closes, potentially including a rate cut.

This signal has stirred anticipation in financial markets, hinting at significant shifts in U.S. monetary policy.

Traders and investors are closely monitoring these developments, given their broad impacts on stocks and cryptocurrencies like Bitcoin and Ethereum.

Anticipation Builds for Federal Reserve Rate Change

Trump’s statement has sparked speculation that a 25-basis-point rate cut might be imminent.

Market data, including CME’s “FedWatch” tool, points to a high probability of this cut happening in October, with institutional investors already adjusting their portfolios in response.

The prospect of lower interest rates is triggering expectations of heightened market volatility and activity across asset classes.

Historically, rate cuts have influenced cryptocurrency markets significantly. Between 2019 and 2020, similar Fed moves fueled large rallies in major digital currencies, attracting risk-on investors.

Following Trump's latest announcement, Bitcoin’s price has surged to $115,970.50, with a market capitalization of $2.31 trillion and a dominance rate above 59%.

Its 24-hour trading volume jumped by over 113%, reflecting intensified market interest and trading.​

Cryptocurrency Markets Poised for Volatility Amid Fed Decisions

The Ripple effect of a Federal Reserve rate adjustment extends into cryptocurrencies, which are sensitive to changes in traditional financial policies.

Research indicates that a rate cut often leads to short-term rallies in digital assets as investors pivot amidst new economic conditions.

Bitcoin and Ethereum stand to be the most impacted, showing notable price upticks following initial market reactions.

Coincu’s research highlights how such policy shifts create intertwined movements between legacy financial markets and emerging digital currencies.

The market’s quick response underscores the increasing influence of Federal Reserve decisions on a broad spectrum of investment vehicles, emphasizing the need for investors to stay agile as the policy unfolds.

President Trump’s direct involvement in signaling these moves continues to shape market expectations.

His ongoing calls for rate cuts reflect a broader agenda to support economic growth through accommodative monetary policy, potentially driving further asset price fluctuations in both traditional and crypto sectors.