How Does the Federal Reserve Policy Impact Kaspa's Price in 2025?

Federal Reserve policy impacts Kaspa's price volatility

The Federal Reserve's monetary policy decisions have created notable ripple effects across cryptocurrency markets, including Kaspa (KAS). Recent data from October 2025 shows that when the Fed announced its second quarter-point rate cut, Bitcoin and Ethereum experienced immediate price declines, demonstrating how central bank decisions influence market sentiment across the crypto ecosystem.

Kaspa's price has shown correlation with broader market trends following Fed announcements, as evidenced by its recent volatility patterns. In October 2025, Kaspa's price movements coincided with significant Federal Reserve policy changes:

While Kaspa doesn't show direct ties to Fed policy changes, its market structure is influenced by the broader liquidity conditions that Fed decisions create. The current market cap of $1.45 billion makes KAS susceptible to macroeconomic sentiment shifts. When the Fed signals continued easing, investors often rotate between risk assets, causing volatility in altcoins like Kaspa as capital flows adjust to new interest rate environments. This relationship underscores how even cryptocurrencies with unique technological propositions remain connected to traditional financial policy decisions.

Inflation data correlates with Kaspa's market performance

Kaspa's market performance shows a notable correlation with its token inflation rate. When examining the relationship between KAS token inflation and price movements, we find a clear pattern where lower inflation periods typically coincide with stronger price performance. Current data reveals Kaspa's trueflation rate stands at approximately 6.82%, calculated from 1.72 billion new coins being added to the existing 25.1 billion circulating supply over a 12-month period.

The inflation schedule for Kaspa follows a predetermined pattern, starting at 500 KAS per second and halving every 36 years until reaching the maximum supply cap of 1.3149 billion KAS.

Market data from October 2025 shows KAS trading at approximately $0.058 with a market capitalization of $1.57 billion. This represents a significant decline from July 2025 levels when prices were nearly double. This price correction coincides with constant emission rates against growing supply, effectively increasing inflation pressure on token value. The relationship demonstrates why Kaspa's future decreasing inflation model, where transaction fees will eventually replace block rewards after emissions end, may provide long-term price stability for investors.

Traditional financial market fluctuations affect Kaspa's price by up to 72%

Kaspa's price has demonstrated remarkable sensitivity to broader financial market dynamics, with fluctuations reaching up to 72% correlation with traditional market movements. This vulnerability became particularly evident in October 2025, when KAS experienced a dramatic 27.11% decline over a 30-day period, despite its technological advancements in GHOSTDAG protocol implementation.

Analysis of KAS price behavior shows a clear pattern of volatility tied to macroeconomic factors:

The cryptocurrency's price journey from its all-time high of $0.2078 on July 31, 2025, to its current value of $0.05426 represents a substantial correction influenced by traditional market downturns. Institutional investment behavior, particularly following Standard Chartered's Zodia Custody offering institutional-grade solutions for KAS, has amplified this effect. When market sentiment shifts in traditional finance sectors, Kaspa experiences disproportionate price impacts due to its relatively modest market capitalization of approximately $1.45 billion. Financial analysts project recovery potential to $0.36 by late 2025 if traditional markets stabilize.

FAQ

What is kas coin?

KAS coin is Kaspa, a cryptocurrency using BlockDAG architecture and GHOSTDAG protocol for near-instant transaction confirmations. It maintains proof-of-work security and scales efficiently.

Does Kaspa's have a future?

Yes, Kaspa has a promising future. Its innovative GHOSTDAG protocol and growing adoption suggest strong potential for long-term success and value appreciation by 2030.

Can Kaspa reach $10 dollars?

While possible, it's highly unlikely in the near term. Kaspa would need to gain over 11,000% from current levels to reach $10, which is an extremely ambitious target.

What is the name of Melania Trump's coin?

Melania Trump's coin is called $MELANIA. It's an official meme coin associated with the former First Lady.