Fed's October 29 Decision: Unexpected Pause Could Crash Stocks and Bitcoin Prices

The Federal Reserve's October rate decision on October 29 threatens unexpected volatility in U.S. stocks and Bitcoin as government shutdown risks obscure the economic outlook. With key labor data delayed due to the ongoing shutdown, the Fed faces unprecedented challenges in determining interest rate policy. Major assets including Bitcoin (BTC), gold, and S&P 500 are trading near record highs, driven by institutional ETF inflows and expectations of continued rate cuts. However, the absence of crucial employment data increases the possibility of a Fed pause that could trigger market turbulence. Market indicators currently price a 96.2% probability of a 25 basis-point rate cut, but the data vacuum makes this outcome uncertain. Investors should consider protective strategies including Bitcoin put options, reduced leverage, and increased gold exposure to hedge against potential Fed policy surprises.