Core Viewpoint - The Federal Reserve's potential interest rate cut on October 29 could drive Bitcoin's price to $125,000, with a consensus forming around a shift towards looser monetary policy that typically benefits Bitcoin [1]. Group 1: Interest Rate Expectations - The CME FedWatch tool indicates a 97% chance of a 0.25% interest rate cut later this month, supported by Polymarket data showing a 98% probability of the same [2]. - Lower interest rates generally encourage investment in risk-on assets, which includes cryptocurrencies [2]. Group 2: Market Performance - Bitcoin is currently trading above $115,000, driven by institutional demand, with exchange-traded fund inflows exceeding $445 million last week [3]. - The total cryptocurrency market has gained 8% in value since $19 billion in positions were liquidated in October, now surpassing $4 trillion [2]. Group 3: Market Sentiment and Strategy - Market sentiment remains broadly supportive for risk assets, with a bullish outlook on Bitcoin as the easing cycle approaches, although caution is advised around market volatility [3][4]. - ETFs are seen as a consistent demand source, pulling coins off the market, but traders are currently taking incremental exposure rather than making large bets [4]. Group 4: Legislative Concerns - Ongoing government shutdown could negatively impact market sentiment, delaying important crypto legislation and altcoin ETF approvals [5]. - The timeline for legislative approval is tightening as the holiday season approaches, which could further affect market dynamics [5]. Group 5: Recent Price Movements - Bitcoin has increased by 2.1% in the past 24 hours, trading at $115,148, while Ethereum has risen by 4.2%, trading at $4,159 [6].

LIVE Dow Set to Open Up as Market Focuses on the Fed Last Updated: 1 hour ago Investors Bet on Rate Cuts as Fed Meeting Looms By George Glover Investors are convinced the Federal Reserve is going to cut interest rates when it announces its next policy decision on Wednesday. The only uncertainty is about the size of the cut. Traders are pricing in a 94% chance of a quarter-point reduction and a 6% chance of a half-point cut, according to the CME FedWatch tool. The market is betting that the Fed will continue ...