Bitcoin and Ethereum Slide After Fed Signals Rate Cut Era Ending

NEW YORK, NY — Bitcoin and Ethereum prices fell Wednesday after Federal Reserve Chair Jerome Powell suggested the recent rate cut may be the last for 2025. Bitcoin dropped 1.6% over the past 24 hours, nearing $111,000, while Ethereum fell about 2% to just over $3,900, according to market data.

The total market capitalization of cryptocurrencies declined by 1.8%. Powell stated during a press conference that there are “strongly differing views” within the Fed regarding future rate cuts, but many agree that it may be prudent to pause for a while.

The S&P 500 ended the day nearly flat, while the Dow Jones dropped by 0.2%. Despite the decline, some analysts remain cautiously optimistic. “Easing monetary conditions could support upward price momentum for Bitcoin as long as the macroeconomic forecast is stable,” said Alex Blume, founder and CEO of Two Prime.

This dip in crypto prices follows a recent flash crash on October 10, which wiped out over $19 billion in positions. In that event, Bitcoin lost over $200 million, plummeting nearly 10% following President Donald Trump’s tariff threats against China. Ethereum experienced an even sharper decline, dropping almost 14%.

After Trump reassured the market that “everything will be fine” a few days later, prices began to stabilize. Currently, Bitcoin is trading around $110,000, and Ethereum is close to $4,000.

According to Thomas Perfumo, a global economist at Kraken, “The fluctuating macroeconomic backdrop is the main driver of this crypto cycle,” adding that the October 10 liquidation event has made investors more risk-averse.

The Fed’s long-anticipated rate decision on October 29, 2025, is expected to cut rates by 25 basis points, which the market has largely priced in. There is a 96.7% probability of a rate cut, with another expected in December.

Powell’s upcoming speech could influence market reaction. If he leans toward a hawkish tone, Bitcoin might experience a correction to around $104,000, whereas a dovish shift could spark a rally toward $120,000. Ethereum mirrors Bitcoin’s pattern, with speculative ranges suggesting it may rise to $6,800 or fall to $5,700 if Powell delivers a hawkish message.

As the FOMC meeting approaches, traders are preparing for potential volatility. The meeting is scheduled for 2:00 PM ET on October 29, 2025, followed by Powell’s press conference.