Emre Yumlu 
The latest statements from the U.S. Federal Reserve (Fed) are fueling optimism across financial markets, suggesting that a new phase of monetary easing may be on the horizon. This potential shift could provide a major boost for crypto assets heading into the final quarter of the year.
Powell’s Remarks Ease Market Concerns
In his recent address, Fed Chair Jerome Powell acknowledged the growing weakness in the labor market and the increasing downside risks to employment. He emphasized that the central bank is now moving toward a more “neutral” policy stance. “There is no risk-free path as we balance our employment and inflation goals,” Powell said, signaling that a period of policy easing may be approaching.
These dovish remarks strengthened investor expectations for rate cuts. According to CME futures data, there is a 95.7% probability of a 25-basis-point cut at the Fed’s October 29 meeting, while the chance of another similar cut in December has climbed to 94.8%.
End of Tightening Could Benefit Bitcoin
Powell also hinted that the Fed’s quantitative tightening (QT) phase may soon come to an end — a message markets interpreted as another bullish sign. JPMorgan Chief Economist Michael Feroli noted, “The Fed is almost certain to cut rates at its next meeting.”
Bitcoin analyst Joe Consorti echoed this sentiment, stating, “With 125 bps of cuts already priced in and QT nearing its end, BTC has been rangebound for months — you can guess what happens next.” According to Consorti, halting QT and lowering interest rates below 3% could serve as a powerful tailwind for Bitcoin in the months ahead.
Crypto Market Reaction Remains Muted
Despite the Fed’s dovish tone, the crypto market has remained cautious following the weekend’s major liquidation event. Total market capitalization briefly dipped below $4 trillion, with Bitcoin dropping under $110,500 before rebounding to $112,500 during the Asian session.
Ethereum also slipped below the $4,000 psychological threshold but recovered to around $4,120 at the time of writing. Altcoins, meanwhile, are showing only mild recoveries, keeping the overall sentiment restrained.
As expectations for monetary easing continue to rise, analysts believe the fourth quarter could mark the start of a fresh rally across the crypto landscape — led once again by Bitcoin.
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