The Bitcoin, Ethereum, and Dogecoin prices are expected to react to another Fed rate cut, which is likely to happen at the October 29 FOMC meeting. Although this is typically bullish for risk assets, analysts have noted that the rate cut might already be priced in.
What Happens To The Bitcoin, Ethereum, and Dogecoin Prices On a Rate Cut
Crypto analyst Bull Theory noted that a 25 basis points (bps) rate cut is already priced in, suggesting that Bitcoin, Ethereum, and Dogecoin prices are unlikely to rally much if they do so following the rate cut announcement. The analyst indicated that what could spark another bull rally for the market is if Jerome Powell signals the end of quantitative tightening.
Bull Theory stated that if confirmed, it would mean that the Fed stops draining liquidity, which would be a major turning point for the Bitcoin, Ethereum, and Dogecoin prices. The analyst added that every bull market begins when policy quietly flips from restraint to support and that this could be the moment.
It is worth noting that Powell had already signalled at the National Association for Business Economics annual meeting that they intend to end quantitative tightening soon enough. Meanwhile, Bull Theory also indicated that Powell’s signaling of more rate cuts could be bullish for Bitcoin, Ethereum, and Dogecoin prices.
The Fed is expected to cut rates again at the December FOMC meeting as the labor market continues to weaken. Crypto analyst Ted Pillows noted that a 50 bps cut instead of a 25 bps cut at this week’s FOMC meeting could trigger a run. However, for now, the analyst doesn’t think the uptrend is confirmed. He added that the Bitcoin, Ethereum, and Dogecoin prices are moving up slightly but not with real strength yet.
Other Potential Bullish Catalysts For This Week
In addition to the Fed rate cut decision and Powell’s potential signaling of the end of quantitative tightening, the ‘Mag 7’ earnings and Trump’s meeting with China’s president are other potential bullish catalysts for a significant rally this week. Microsoft, Alphabet, Meta, Apple, and Amazon all have their earnings calls this week and could spark a market rally for Bitcoin, Ethereum, and Dogecoin prices if they beat estimates.
U.S President Donald Trump is meeting with China’s President Xi Jinping at the APEC summit on October 30, where they could reach a trade deal. Both countries have already made headway, as the U.S. Treasury Secretary Scott Bessent revealed that they have agreed on a framework for both presidents to work with at their meeting.
It is worth noting that Bitcoin, Ethereum, and Dogecoin prices rallied on the back of Bessent’s statement, suggesting the market may already be pricing in a trade deal. Meanwhile, Standard Chartered analyst Geoffrey Kendrick stated that BTC may never drop below $100,000 again if this week goes well.
