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Bitcoin News Update: Optimistic Fed Stance Lifts Markets, While Analysts Remain Wary Over Trump Policy Proposals

Bitcoin News Update: Optimistic Fed Stance Lifts Markets, While Analysts Remain Wary Over Trump Policy Proposals

Bitget-RWA2025/10/29 02:02
By:Bitget-RWA

- Fed rate cuts spark optimism in crypto and equities, with S&P 500 projected to rise 4%-10% by 2025 amid investor skepticism. - J.P. Morgan warns Fed may pause 2025 cuts to assess Trump-era policy impacts, diverging from Wall Street's easing expectations. - Bitcoin rebounds to $114,600 as ETF inflows drive institutional ownership to 12% of total supply, fueled by geopolitical stability and macro trends. - Binance's CZ backs crypto's macro role post-Trump pardon, while analysts caution Trump tariffs could

Expectations of an upcoming rate reduction by the Federal Reserve have sparked fresh enthusiasm in financial markets, with both stocks and cryptocurrencies gearing up for a potential rally as the year closes. Tom Lee, who serves as chairman of

Technologies and leads research at Fundstrat Global Advisors, shared with CNBC on October 25, as cited by , that the S&P 500 might rise between 4% and 10% by the end of 2025, possibly exceeding 7,000 points, fueled by the Fed’s policy shift and ongoing investor caution. He also pointed to a likely rebound in cryptocurrencies, referencing historically low open interest and strengthening technical signals as reasons for a late-year surge in digital assets.

Yet, this optimistic perspective is not universally held. J.P. Morgan’s team of strategists, including Karen Ward, chief market strategist for asset management, cautioned that the Fed could halt rate cuts after December to evaluate the effects of Donald Trump’s policy changes. Ward explained that although the Fed has already implemented two rate cuts in 2025, its prudent approach—highlighted by Chair Jerome Powell’s recent comments on robust economic indicators—may postpone further reductions next year. This difference from the general Wall Street outlook highlights the uncertainty surrounding how fiscal expansion and inflationary pressures could interact with central bank decisions,

reported.

Bitcoin News Update: Optimistic Fed Stance Lifts Markets, While Analysts Remain Wary Over Trump Policy Proposals image 0

At the same time, much of the Fed’s anticipated policy easing appears to have already been factored into crypto prices.

(BTC-USD) was recently trading close to $114,600, recovering from a dip in mid-October as U.S.-China trade tensions eased and spot Bitcoin ETFs saw substantial inflows. Analysts link the $10,000 price rebound to increased institutional interest, with ETFs drawing in $3.5 billion in new investments just this month. As a result, institutional holders now account for 12% of all Bitcoin, marking a record high. “Crypto is increasingly behaving like a macro-driven asset,” according to a report from , which also suggested that a 0.25% rate cut could further enhance liquidity for riskier investments.

Adding to the positive sentiment, Binance’s Changpeng Zhao (CZ) expressed optimism after being granted a presidential pardon by Trump. Posting on X, CZ stated that cryptocurrency would “generate significant wealth for the nation,” echoing Trump’s executive order to establish the U.S. as a global crypto leader, as

reported. This upbeat mood is mirrored in international stock markets, where funds saw $11.03 billion in net inflows this week, driven by lower inflation and hopes for new trade agreements, according to . Bitcoin’s connection to other risk assets has grown stronger, with the cryptocurrency benefiting from the overall market’s positive outlook.

Despite the current upswing, volatility remains a concern. The rate cut in September led to $60 billion in crypto liquidations, serving as a warning for investors. J.P. Morgan’s David Kelly cautioned that Trump’s tough stance on tariffs could conflict with the Fed’s efforts to control inflation, potentially creating new challenges. For now, though, the combination of Fed policy easing, geopolitical calm, and rising institutional participation is powering a coordinated rally across different asset types, as previously noted by Moomoo and in a

analysis.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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