Fed To Cut Rates Again. How Memecoins Could React?
The Federal Reserve System (American central bank) is very likely to cut interest rates during its monetary policy meeting at the end of October. Some experts predict this will not be the last rate cut this year. Looser monetary policy could boost the memecoin market as money becomes cheaper.
There are only two monetary policy meetings left for the Federal Reserve in 2025 — at the end of October and in early December. According to some analysts, there is more than a 90% chance the Fed will cut rates at one of them. JP Morgan experts even estimate cuts at both meetings.
Rate cuts could fuel risk appetite in crypto markets
Looser monetary policy typically supports financial markets, including crypto assets and meme coins. Cheaper money motivates investors to open positions across various assets, while also increasing appetite for riskier investments.
And meme coins belong to the riskiest of all cryptocurrencies. Known for their rapid volatility, they can surge sharply when market sentiment improves — but also plummet just as quickly on negative news.
Opinions differ widely on which meme coins could benefit most from the upcoming rate cuts. Some analysts mention projects like Troll, Toshi, Rekt, Maxi Doge, or Pepenode. However, it remains extremely difficult to predict which of them has real growth potential.
If investing in mainstream cryptocurrencies is often described as an adrenaline sport, this is doubly true for meme coins. Trading them resembles searching for a gold mine: you might strike it rich, or you could lose your entire stake.
Meme coins remain the most unpredictable assets
Some experts even claim that the most profitable meme coins may not have been launched yet. As we explained in a previous article, meme coins are a unique type of cryptocurrency, inspired by internet memes or built with a humorous concept.
Investors are primarily drawn by strong online communities and the potential for quick gains. They often enjoy the mix of humor and speculation, which creates a sense of belonging within meme coin groups. The low entry barrier allows nearly anyone to participate with minimal capital — but only a fraction ever achieve the dream of massive returns in this unpredictable world.
Sources:
https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm
https://www.jpmorgan.com/insights/global-research/economy/fed-rate-cuts
https://finance.yahoo.com/news/why-3-meme-coins-could-095038622.html
https://cryptodnes.bg/cz/fed-snizi-sazby-co-na-to-meme-coiny/