Strong Signal from the Fed: Rate Cut Triggers Crypto and Pi Network Surge

The U.S. Federal Reserve has once again lowered its benchmark interest rate by 25 basis points on October 29, 2025. This marks the second consecutive monthly cut, immediately sparking a surge in digital asset markets, including Bitcoin and Pi Network.

This move follows a historical pattern. In 1998, a rate cut led to a stock market rally. In 2024, Bitcoin soared after the Fed eased monetary policy. Last month, Bitcoin surged again. This month, both Bitcoin and Pi Network are showing strong upward momentum.

Rate Cut Means More Liquidity

The Fed’s decision to reduce the federal funds rate from 4.25% to 4.00% comes amid growing economic pressure and weakening labor data. Despite inflation remaining above the 2% target, the central bank is prioritizing economic growth.

Lower interest rates typically increase market liquidity. As the U.S. dollar weakens, investors seek alternative stores of value. Digital assets like Bitcoin and Pi Network are becoming top choices.

Bitcoin and Altcoins Rally

Following the Fed’s announcement, Bitcoin jumped 3.4% to $115,583. Ethereum rose 6.1% to $4,194. Daily trading volume across crypto markets hit $160 billion, reflecting heightened investor interest.

However, Pi Network stole the spotlight. Within 24 hours, Pi surged 15%, while Dash and Zcash climbed 22% and 27%, respectively. This signals growing investor appetite for emerging Web3 projects with long-term potential.

Pi Network: From Experiment to Value Exploration

Initially launched as a community-driven experiment, Pi Network is now gaining serious traction. With a rapidly expanding global user base and a growing ecosystem of decentralized apps, Pi is becoming one of the most discussed assets in crypto forums and social media.

The recent price spike following the Fed’s rate cut suggests that the market is beginning to recognize Pi’s potential. Its mobile-based mining model offers an energy-efficient and inclusive approach to coin distribution, setting it apart from traditional cryptocurrencies.

🚨The Federal Reserve will 100% cut interest rates by 25 basis points tomorrow night.🏦
After the Fed cut interest rates in 1998, US stocks surged.
After the Fed cut interest rates in 2024, Bitcoin surged.
After the Fed cut interest rates last month, Bitcoin surged.
After the Fed… pic.twitter.com/6AC6FVrlCY

— PiNetwork DEX⚡️阿龙 (@fen_leng) October 28, 2025

Historical Correlation: Fed Cuts and Crypto Surges

This isn’t a coincidence. Since 2024, every Fed rate cut has been followed by a crypto rally. Traders and analysts now view these cuts as bullish indicators.

• 1998: Rate cut → U.S. stocks rally

• 2024: Rate cut → Bitcoin hits new highs

• September 2025: Rate cut → Bitcoin stabilizes at $116K

• October 2025: Rate cut → Bitcoin and Pi Network surge

What’s Next?

With dovish signals from the Fed and the possibility of further cuts, crypto markets may continue their bullish trend through year-end. Still, investors are advised to remain cautious of short-term volatility and potential corrections.

Analysts from Wave Digital Assets suggest that if rate cuts persist and capital continues flowing into digital assets, the market could see an even stronger rally heading into Q4.

Conclusion

The Fed’s latest rate cut has once again acted as a catalyst for the crypto market. Bitcoin continues to prove its strength as a hedge asset, while Pi Network is emerging as a serious contender in the Web3 space.

As momentum builds, all eyes are on the Fed’s next move—and how the crypto market will respond.

Writer @Ellena

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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