Wednesday of Intrigue!!!! 🤯🤯🤯
General context
It is expected that today the Federal Reserve (Fed) will announce a rate cut of 25 basis points —the third consecutive in 2025—, which could boost risk assets like cryptocurrencies.
At the same time, the Office of the Comptroller of the Currency (OCC) authorized traditional banks in the U.S. to act as “riskless principal” intermediaries in transactions with crypto assets. This means that these banks can facilitate buy-sell transactions of crypto without having to hold them on their balance sheet —a strong step towards the integration of crypto and traditional finance.
✅ What could drive the market
If the Fed lowers rates, it could provide a liquidity boost, encouraging demand for riskier assets like $BTC BTC Bitcoin #BTC and $ETH ETH Ethereum #ETC . The OCC's decision expands the possibility for large institutional players and banks to participate in the crypto market, which could attract more institutional capital, improve liquidity, and incentivize medium-term investments.
⚠️ Risks and uncertainties
While the expectation of a cut is already well incorporated into the market, much depends on what the Fed chair says in his statement: his tone regarding inflation, growth, and future monetary policy will influence the direction of risk assets.
Altcoins and small projects remain under pressure: since the beginning of October, the crypto market has lost tens of billions of dollars, and many mid/low-cap coins have seen significant drops.
🔎 What to observe today
The Fed's announcement and the press conference of its chairman: a lower rate + an optimistic tone could benefit BTC, ETH, and risk assets.
$LUNA $ Behavior of altcoins: although the general environment improves, smaller coins could continue with high volatility.
