Bitcoin News Today: Bitcoin Rallies as Fed Rate Cuts Trigger Market Contradictions

Bitcoin surged beyond $110,500 in early October 2025, defying expectations as the U.S. inflation data surprised market participants. The move comes amid anticipation of the Federal Reserve's upcoming rate cut, scheduled for October 29, which analysts say could further fuel crypto markets. While Americans remain fixated on inflation's impact on daily life, cryptocurrency traders are closely watching how the central bank's policy shifts interact with broader economic and geopolitical factors, according to a Coinpedia article.

The Fed's decision to cut rates by 25 basis points in September had already triggered a $60 billion sell-off in crypto markets, a pattern that historically repeats when major monetary policy changes are priced in, the article noted. This time, however, Bitcoin's rally to an all-time high above $126,000 earlier this month suggests the market has absorbed the rate-cut narrative. Standard Chartered analyst Geoff Kendrick sees long-term potential for Bitcoin, projecting a possible push toward $200,000 by year-end if the Fed continues easing. Short-term volatility, though, remains a risk as traders brace for another "sell the news" reaction when the October cut is announced.

The rate cut's ripple effects extend beyond crypto. While consumers may see slight relief in credit card APRs, high existing balances will keep borrowing costs elevated. Meanwhile, the interplay between the Fed's actions and external factors—such as a potential China trade deal or a U.S. government shutdown—adds layers of uncertainty, the article warned. For now, Bitcoin's price action reflects a tug-of-war between macroeconomic optimism and the inherent volatility of digital assets.

In a separate but related development, Binance-backed decentralized exchange (DEX) ASTER announced plans to allocate 70–80% of its Season 3 fee revenue toward repurchasing its native tokens. The buyback strategy, which will adjust based on market conditions, aims to bolster the ASTER token's value and reward holders. This move underscores DeFi projects' growing focus on tokenomics as a tool for community engagement and long-term sustainability, according to a Coinpedia report.

The broader crypto market is also navigating a landscape of mixed signals. While the Fed's easing cycle could make riskier assets more attractive, the recent history of "sell the news" events highlights the challenges of timing market reactions. Traders are advised to remain cautious, as liquidity can rebound quickly after sharp sell-offs but often with significant short-term turbulence, the article noted.

Looking ahead, the October 29 rate decision will be a pivotal moment. For Americans, the cut's impact on inflation and borrowing costs remains a primary concern. For crypto traders, it represents another opportunity to test whether Bitcoin's bullish momentum can withstand the volatility that often accompanies major policy shifts. With the Fed's playbook still evolving and external risks looming, the coming weeks promise a turbulent yet potentially transformative period for digital assets, the article concluded.