Bitcoin News Today:

Bitcoin and stocks rallied in late October 2025 as Federal Reserve policy uncertainty declined, signaling renewed risk appetite across global markets. The Kansas City Fed's Policy Rate Uncertainty (KC PRU) index, a market-based gauge of short-term rate volatility, fell to multi-month lows, reflecting investor confidence in a predictable rate-cutting path. This decline coincided with a synchronized surge in Bitcoin, Ethereum, and major U.S. equity indices, as capital flowed into risk assets amid expectations of further Fed easing. The KC PRU's updated methodology, now based on SOFR-linked options instead of Eurodollar futures, has provided a more accurate reflection of rate expectations post-LIBOR transition, according to analysts .

Bitcoin traded near $117,336, up 0.6% on the day, while Ethereum rose 2.06% to $4,577. The crypto market cap expanded to $4.1 trillion, with altcoin dominance reaching 29.48%, the highest since December 2024. ETF inflows into Bitcoin and Ethereum products surged to $642 million in the week leading to the Fed's rate decision, the largest since July 2025. Meanwhile, the S&P 500 and Nasdaq hit record highs, with the latter showing a 24-hour correlation of +0.86 with Bitcoin, underscoring a shift in investor sentiment toward growth assets .

The Fed's decision to cut rates by 25 basis points to a 4.00%-4.25% range was widely anticipated, with futures markets pricing in a 96% probability of the move. The reduction aligns with broader monetary easing seen in 2020-2021, when Bitcoin surged from $10,000 to nearly $69,000 amid historic liquidity injections. Analysts attributed the current rally to lower opportunity costs for holding non-yielding assets like crypto, dollar weakness, and institutional adoption via ETFs. Public companies added $25 billion to crypto treasuries in Q3, with over half allocated to Ethereum, further reinforcing bullish technical indicators .

However, risks linger. A partial U.S. government shutdown delayed critical labor market data, including the September jobs report, leaving the Fed without key inputs for its October 28-29 meeting. This uncertainty raised the possibility of a policy pause, with some FOMC members potentially advocating caution amid inflation persistence and economic fragility. A surprise pause or delayed easing could trigger sharp corrections in stocks and crypto, particularly in high-valuation altcoins. Market participants are closely monitoring private-sector data and regional inflation trends to gauge the Fed's next move .

Historical patterns suggest that expansive monetary policy supports crypto bull markets, as seen in 2020-2021. However, 2022's aggressive rate hikes led to a 70% Bitcoin correction, highlighting the sector's sensitivity to tightening cycles. Post-2025, the Fed's dovish stance has created favorable conditions, but analysts caution that economic fundamentals-such as sticky inflation in services and labor market strains-could cap gains. Institutional investors are hedging with put options and reducing leverage, while retail traders are advised to diversify portfolios and avoid overexposure to volatile altcoins .

The KC PRU's decline reflects broader macroeconomic stability, but the path forward remains contingent on data clarity. If the delayed jobs report shows cooling inflation and moderate growth, the Fed may proceed with a 25-basis-point cut. Conversely, persistent inflation or economic weakness could prompt a pause, amplifying market volatility. Investors are advised to monitor Fed Chair Jerome Powell's post-meeting press conference for guidance on future policy trajectories .

: Bitcoin, Ethereum, XRP Price Prediction After Fed Rate Cut (https://coinpedia.org/price-analysis/bitcoin-ethereum-xrp-price-prediction-after-fed-rate-cut/)

: The Fed's Next Move on Oct. 29: How a Scenario Few Expect Could Derail U.S. Stocks and Crypto (https://www.coindesk.com/markets/2025/10/05/the-fed-s-next-move-on-oct-29-how-a-scenario-few-expect-could-derail-u-s-stocks-and-crypto)

: Bitcoin and Stocks Rally as Fed Rate Uncertainty Drops, Risk Appetite Returns (https://blockonomi.com/bitcoin-and-stocks-rally-as-fed-rate-uncertainty-drops-risk-appetite-returns/)

: Fed Rate Cuts 2025: Impact on Crypto, Stocks, and Market Outlook (https://crypto.com/us/market-updates/fed-rate-cuts-2025-understanding-the-impact-and-predictions)