**Breaking: Fed Cuts Key Interest Rate By 25 BPS, QE to Start on Dec 1; What’s the Impact on Crypto Bull Run?**

On Wednesday, October 29, the Federal Reserve reduced its federal funds rate by a quarter percentage point to a range between 3.75% and 4%. Alongside this decision, the Fed announced that Quantitative Easing (QE) will commence on December 1, 2025.

Fed Chair Jerome Powell emphasized that the rate decision in December will depend on the availability of economic data, urging a swift resolution to the ongoing government shutdown to facilitate clearer policy guidance. The majority of the Fed’s members supported this monetary action, with the exception of Stephen Miran and Jeffrey Schmid. Notably, Miran, appointed by former President Trump, advocated for a larger rate cut of 50 basis points, while Schmid preferred no change to the federal funds rate.

### What’s the Impact of the Fed’s Policy Change on the Crypto Bull Market?

#### Midterm Fear and Uncertainty Unleashed: Government Shutdown Impacts

Following Powell’s comments about the data-dependent December decision, market anxiety has increased amid the ongoing government shutdown. This uncertainty has reflected in trader sentiment, specifically among Kalshi market participants.

At the time of reporting, Kalshi traders assigned a 69% probability to the Fed implementing a 25 basis point cut in December. Meanwhile, the chance of the Fed maintaining the current rate rose to 34%—up from 13% earlier on Wednesday. This shift suggests that the broader crypto bull market may face a period of choppy consolidation in the coming weeks as investors navigate the political and economic uncertainty.

#### Long-Term Bullish Sentiment Solidified

Despite short-term volatility, the long-term outlook for the crypto bull market remains optimistic. The current environment is reminiscent of the 2017 crypto summer, which also coincided with President Trump’s leadership period.

The confirmed start of QE adds significant bullish momentum to cryptocurrencies, especially as capital is expected to rotate away from Gold, which is currently heavily overbought. This shift could further fuel the crypto market’s upward trajectory in the months ahead.

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Stay tuned for more updates on how Federal Reserve policies continue to influence the evolving crypto landscape.
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