BrentMarkets.com: Fed Week Could Spark Major Moves in Bitcoin, Ethereum, and Precious Metals

The most important trading event of the month, and possibly of the year- is here. This Wednesday, the U.S. Federal Reserve will announce its long-awaited interest rate decision at 18:00 GMT, followed by a press conference at 18:30 GMT.

Markets are already bracing for significant volatility across stocks, cryptocurrencies, gold, and silver. For traders on BrentMarkets.com, the opportunity lies in using crypto CFDs, arbitrage trading, and disciplined stop-loss/take-profit strategies to capture these swings.

First Rate Cut of the Year

The Fed is widely expected to cut interest rates from 4.5% to 4.25%. That move is already priced in, but the real story is what comes next.

• Markets currently assign an 80% chance of another 0.25% cut in November and a further cut in December.

• If Wednesday’s event boosts those odds to 90% or higher, risk assets could rally strongly.

• On the other hand, if Fed commentary dampens expectations, stocks and crypto may correct lower.

This will be the Fed’s first interest rate cut of the year, and traders are already adjusting margin levels in anticipation of sharp moves.

Bitcoin and Ethereum: Ready for Breakouts

Cryptocurrencies are at the center of the action this week.

• Bitcoin is trading at around $116,000, with upside targets at $120,000 and then the record high of $124,500 if momentum builds after the Fed meeting.

• Ethereum is hovering near critical resistance and could target $5,000 on a dovish outcome.

For traders on BrentMarkets.com, CFDs provide the flexibility to trade both directions. A confirmed breakout can be amplified with leverage, while stop-loss and take-profit orders help lock in gains or cut losses during sudden reversals.

Arbitrage traders will also be watching closely. Volatility tends to widen price spreads between exchanges, creating opportunities to buy Bitcoin or Ethereum at a discount on one platform and sell at a premium on another. CFDs make this process faster and more efficient by eliminating the need to move coins between wallets.

Gold and Silver Extend Gains

Precious metals continue to benefit from lower interest rate expectations.

• Gold is trading on new record highs above $3,600.

• Silver has broken above $42, its highest level since September 2011.

For CFD traders, the combination of strong momentum and high volatility provides clear opportunities. Stop-loss levels can be placed just below breakout zones, while take-profit orders can target incremental levels higher as metals extend their runs.

Stocks at Risk and Reward

Equities will also respond directly to Fed commentary. The S&P 500 has been setting record highs in recent weeks, but the market remains vulnerable if investors are disappointed by the Fed’s forward guidance. Big tech stocks, including Apple, Amazon, Microsoft, and Meta, could see amplified swings as investors reposition portfolios.

On BrentMarkets.com, CFD traders can take advantage of this volatility without needing to hold the underlying shares. Combining stock CFDs with crypto positions allows traders to diversify across correlated risk assets.

Strategic Setup for Fed Week

Traders are preparing for Fed Week with a combination of strategies:

1. Watch the Fed probabilities: If odds of November and December cuts rise above 90%, expect rallies in Bitcoin, Ethereum, gold, and silver.

2. Trade crypto CFDs: Bitcoin above $120,000 and Ethereum above $5,000 could trigger breakout trades.

3. Use arbitrage tactics: Monitor price spreads across platforms, which tend to widen during fast market moves.

4. Apply SL/TP discipline: Lock in profits with take-profit orders and protect capital with stop-loss levels.

5. Diversify across CFDs: Combine crypto, metals, and equities for broader exposure to Fed-driven volatility.

Conclusion

Fed Week is here, and with it comes some of the best trading opportunities of the year. The first rate cut of 2025 is likely, but the real driver will be whether the Fed signals more to come in November and December.

For traders on BrentMarkets.com, this is the moment to lean into volatility with crypto CFDs, arbitrage setups, and disciplined stop-loss/take-profit execution. Whether it’s Bitcoin aiming for new highs, Ethereum testing $5,000, or gold and silver breaking records, the post-Fed environment will deliver sharp moves across markets.

Those who are prepared stand to benefit most from the volatility of Fed Week.