Bitcoin is entering another important macroeconomic phase as markets turn their attention to the Federal Reserve.
The Fed raised its benchmark interest-rate target to 3.75%โ4% in September, its first hike since 2023. The latest minutes also showed that policymakers are not currently looking for a rapid series of additional hikes.
The next major focus is the October 27โ28 FOMC meeting. Recent comments from Fed Governor Christopher Waller suggest that policymakers could remain flexible on the timing of future hikes, depending on incoming economic data.
For Bitcoin, the Fedโs direction matters because interest rates influence liquidity, Treasury yields and investor appetite for risk assets. A shift toward a less restrictive policy could potentially become a positive catalyst for BTC, while higher-for-longer rates could continue creating pressure.
Right now, Bitcoin is also dealing with elevated Treasury yields and a stronger U.S. dollar, which have recently weighed on the broader crypto market.
The key question: Will the Fed remain hawkish, or will the next phase of monetary policy become more supportive for risk assets?
For Bitcoin, the answer could be one of the biggest macro catalysts of the coming weeks.