The market may have already priced in the rate cut, leaving little fresh upside; the crypto sector remains highly leveraged and vulnerable to macro shifts
FinTech BizNews Service
Mumbai, October 30, 2025: As expected, the U.S. Federal Reserve Bank cut rates by 25 bps from 4.125% to 3.875%.
Avinash Shekhar, Co-Founder & CEO, Pi42 (India’s first INR based crypto futures platform), shares his notable views around the impact of Fed Rate cut in the crypto sector:
“Despite the Federal Reserve’s interest rate cut of 25 basis points today, risk assets such as Bitcoin and Ethereum immediately reversed course, with more than $700 million liquidated and over 151,000 traders wiped out in the past 24 hours.
This sharp reaction suggests two key dynamics: first, the market may have already priced in the rate cut, leaving little fresh upside; and second, the crypto sector remains highly leveraged and vulnerable to macro shifts, meaning even “positive” central bank moves can trigger a swift deleveraging spiral.
Traders should now regard any bounce as a relief rally, not a new uptrend. Momentum remains fragile, liquidity risk is elevated, and until there is clear confirmation of institutional capital flowing back in, the path of least resistance appears sideways to lower.”
