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Sohrab KhawasSohrab is a passionate cryptocurrency news writer with over five years of experience covering the industry. He keeps a keen interest in blockchain technology and its potential to revolutionize finance. Whether he's trading or writing, Sohrab always keeps his finger on the pulse of the crypto world, using his expertise to deliver informative and engaging articles that educate and inspire. When he's not analyzing the markets, Sohrab indulges in his hobbies of graphic design, minimal design or listening to his favorite hip-hop tunes.
- Sep 19, 2025 07:54 UTC
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Bitcoin and Altcoins Could Surge in Q4 as Fed Signals More Rate Cuts
The Fed cut rates, signaling one to two more cuts by December, boosting crypto optimism.
Bitcoin and large-cap altcoins benefit from softer dollar and increased liquidity after Fed easing.
Analysts expect a quarter-long trend of crypto rally, with altcoins outperforming as Bitcoin dominance declines.
The U.S. Federal Reserve has ended its 10-month pause, cutting interest rates by 25 basis points this week. But the real bombshell isn’t the cut itself. It’s what comes next. Fed signals now point to multiple rate cuts ahead, a shift that could unleash fresh liquidity into markets.
And according to crypto analyst VirtualBacon, this could be the spark that sends Bitcoin and major altcoins into a powerful Q4 rally.
Fed Signals 1-2 More Cuts Ahead
VirtualBacon pointed out that the Fed’s dot plots now suggest one to two more rate cuts by December. This easing cycle is important because lower interest rates usually boost high-risk assets like Bitcoin, making it easier for investors to put money into crypto.
The CME FedWatch data supports this view:
- October meeting: 91% chance of a rate cut
- December meeting: 83% chance of another cut
- Less than 1% chance of no more cuts in 2025
The focus has shifted from “if” the Fed will cut rates again to “how many times,” which is a positive sign for crypto markets.
Jobs Data Driving Policy Shift
The Fed’s decision is heavily influenced by slower job growth. Annual revisions between May and August cut 911,000 jobs from 2024–25 totals, showing employment is weaker than expected.
Fed Chair Powell noted that jobs are more important than inflation right now, signaling a dovish stance that supports market liquidity. However, Powell carefully avoided labeling this move a “one-and-done,” instead pointing to the dot plots, code for “more cuts are on the table.”
- Also Read :
- 4 Altcoins Under $1 That Could Explode in Q4 2025
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Why Bitcoin & Altcoin Could Rally in Q4?
Rate cuts generally weaken the U.S. dollar and inject liquidity into risk assets like bitcoin altcoin.
- Bitcoin is likely to benefit from increased liquidity and softer dollar conditions.
- Large-cap altcoins like Ethereum, Solana, XRP, and Binance Coin are already seeing rotation.
- Analysts suggest this is a quarter-long trend, not a short-term spike, with altcoins likely to gain as Bitcoin dominance trends lower.
Even with quantitative tightening continuing at a minimal pace of $5 billion per month, the main driver for crypto is rate cuts, setting up ideal conditions for a late-year rally.
Therefore, VirtualBacon’s analysis shows that the Fed’s policy shift could trigger a strong rally in Bitcoin and altcoins through Q4, giving crypto markets a potentially powerful finish to 2025.
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FAQs
Yes, the Fed signals one to two more rate cuts by December 2025, with market data showing a very high probability of this happening.
Lower interest rates typically weaken the U.S. dollar and inject fresh liquidity into markets, which often boosts high-risk assets like Bitcoin.
Bitcoin and large-cap altcoins like Ethereum, Solana, and XRP typically benefit from increased market liquidity and investor risk appetite.
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