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- Sohrab Khawas
Sohrab Khawas
Sohrab 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.
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Qadir AKQadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Oct 29, 2025 12:33 UTC
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Exclusive: FOMC Meeting Today Could Redefine Market Liquidity Outlook, Says Analyst Alicharts
Markets eye Fed’s tone, not just the 25 bps cut — Powell’s stance on ending QT could redefine global liquidity and drive Bitcoin’s next major move.
A dovish Fed statement and QT halt may spark rallies in crypto and equities, while continued QT keeps investors focused on quality assets like Bitcoin.
It’s a big day for global markets and crypto holders as the U.S. Federal Reserve is set to announce its FOMC rate decision today at 2 PM ET, followed by Fed Chair Jerome Powell’s press conference at 2:30 PM ET.
While a 25 bps rate cut is almost fully priced in with 99.9% odds, analysts say the real focus isn’t the cut itself, it’s how the Fed frames its decision and whether the central bank signals an end to Quantitative Tightening (QT).
Crypto analyst Ali Martinez, in a discussion with Coinpedia, emphasized that the tone of Powell’s comments and the Fed’s balance sheet policy could shape the next phase of market direction across equities and crypto.
“The market has already priced in the cut, but what truly matters now is whether we’re nearing the end of QT,” Ali Martinez said. “That’s the real story behind today’s decision.”
What to Watch in Today’s FOMC Decision
The Fed Statement
This is the first major signal traders will analyze. If the Fed calls this a “mid-cycle adjustment,” it suggests a one-time move markets could stay flat or even pull back. However, if the statement mentions rising growth risks, it would hint at more cuts ahead, likely boosting market sentiment.
A dovish statement could also push 2-year Treasury yields lower and weaken the U.S. dollar, both seen as early indicators of improving global liquidity, a positive sign for risk assets like Bitcoin.
Quantitative Tightening (QT)
Markets widely expect the Fed to announce the end of QT, effectively stopping the reduction of its balance sheet.
“Ending QT means the Fed is no longer draining liquidity from the system,” Ali Martinez noted. “That’s a structural shift toward expansion, historically the kind of pivot that fuels risk-on behavior across tech, equities, and especially Bitcoin.”
However, he warned that such pivots can also mark cycle tops, pointing to 2019, when Bitcoin peaked months before the Fed officially ended QT.
If QT continues, Ali Martinez believes the market will maintain its current regime, favoring quality assets like Bitcoin and large-cap equities over smaller-cap or speculative altcoins.
Powell’s Press Conference (2:30 PM ET)
Powell’s tone will likely determine the immediate market reaction.If he acknowledges slower growth or confidence that inflation is under control, it could signal that the Fed is comfortable easing further, triggering a potential risk rally.
Such a scenario would likely cause:
- Bond yields to drop as markets price in deeper cuts
- The dollar is expected to weaken, indicating easier global liquidity
- Equities and crypto to rally as capital rotates into risk assets
However, if Powell stays cautious and avoids signaling additional cuts, markets may pause or consolidate until more clarity emerges.
The Bottom Line
The 25 bps rate cut is just the headline; the real market catalyst will be the Fed’s language on growth risks, QT, and Powell’s tone during the press conference.
“The FOMC’s stance on QT will be the pivotal factor,” Ali Martinez concluded. “Continuation of QT reinforces the ongoing ‘flight to quality,’ while an early end could spark short-lived relief rallies across risk assets.”
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