Fed Expects 50 Basis Point Rate Cut and Potential Benefits for Bitcoin and Altcoins
Federal Reserve Governor Stephen Miran is calling for a massive interest rate cut of as much as 50 basis points (0.50%) to support the US economy.
This is a bolder move than most Fed officials, who have favored smaller, 25 basis point cuts.
If Miran's plan is approved, it could provide a significant boost to riskier assets like Bitcoin and large-cap altcoins.
Miran again calls for rate cut of up to 50 basis points
At the Federal Open Market Committee (FOMC) meeting in September 2025, the Fed cut interest rates by 25 basis points , bringing them to a range of 4.00%–4.25%, the first cut since December 2024.
Notably, Governor Miran was the only official to support a further 50 basis point rate cut, arguing that current rates were too high and could slow growth and job creation. He noted that the neutral rate may have fallen due to changes in immigration and labor trends.
Meanwhile, Miran continued to push for a more aggressive easing at 0.50% this time to address evolving economic conditions.
Looking ahead, the October FOMC meeting is widely expected to see another 25 basis point cut, with FME's tracker showing a 95.7% chance of this .
Fed projects 50 basis point rate hike by end of 2026
The Fed is expected to cut rates by about 50 basis points by the end of 2025, bringing the target range to 3.50%–3.75%. Some officials forecast further easing in 2026, with rates possibly falling to 3.25%–3.50% as job growth slows and inflation is expected to be 3.0% in 2025 and 2.6% in 2026.
Miran warned that even these cuts may not be enough. He said policy should be adjusted quickly if needed, as keeping rates too high could damage the labor market and cause economic problems down the road.
Potential Benefits for Bitcoin and Altcoins
Such drastic rate cuts often give cryptocurrencies a big boost. For example, when the Fed cut rates by 25 basis points in September, the price of Bitcoin skyrocketed from around $111,400 to over $117,000 just a few days later, a gain of about 5% in just one week.
Meanwhile, large-cap altcoins like Ethereum and some popular meme coins also benefited from this additional liquidity, with higher trading activity and rising prices.
If the Fed follows Miran’s advice and cuts interest rates by 50 basis points, Bitcoin and major alternative cryptocurrencies will likely come under even more buying pressure, potentially kicking off another strong crypto market cycle.