3 Reasons Pi Coin Could Crash After Fed Decision

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Oct 29, 2025

Pi Coin has rocketed up over 80% this year, hitting $0.2795. But with the Fed rate decision looming and 97% odds of a cut, is a sharp pullback incoming? Three big risks could crash it hard—starting with investors selling the news. What happens next?

Financial market analysis from 29/10/2025. Market conditions may have changed since publication.

Have you ever watched a crypto token skyrocket, only to wonder if it’s all smoke and mirrors about to vanish? That’s the vibe with Pi Coin right now—up over 80% from its yearly lows, touching $0.2795, and suddenly everyone’s buzzing. But here’s the kicker: the Federal Reserve’s upcoming rate decision could flip the script entirely. I’ve been tracking these volatile swings for years, and something feels off. Let’s dive deep into why this rebound might be a house of cards ready to tumble.

The Fed Rate Cut Looming Large

Picture this: markets are on edge, Bitcoin’s flirting with $112,000, Ethereum’s pushing $4,000, and altcoins like Pi are riding the wave. The Fed’s meeting today, October 29, 2025, has everyone glued to Jerome Powell’s words. Odds of a rate cut? Over 97% according to reliable tools. It’s baked in. But in crypto, what gets priced in often gets sold off hard. That’s my first big worry for Pi.

Sell the News Phenomenon in Action

Traders love a good rumor. They buy Pi Coin ahead of the cut, hyping it as rocket fuel for risk assets. Crypto thrives on loose money, right? Lower rates mean cheaper borrowing, more liquidity flooding into speculative plays like this. Pi’s jumped 36% in the last week alone, with volume hitting $126 million in 24 hours. Impressive, sure.

Yet, once the cut happens—poof—the excitement evaporates. It’s classic “buy the rumor, sell the news.” I’ve seen it crush tokens before. Remember how some alts pumped pre-halving and dumped post? Same energy. Pi’s market cap sits at $2.28 billion now, but without fresh catalysts, profit-taking could cascade.

Markets anticipate events perfectly until they don’t—then the reversal hits like a freight train.

– Seasoned crypto analyst

Think about the broader picture. Bitcoin dipped 3% today despite the hype. If the king falters post-cut, smaller fries like Pi get burned worse. No one’s immune in a correlated sell-off.

Technical Indicators Screaming Caution

Charts don’t lie, even if we wish they did sometimes. Pi’s Relative Strength Index (RSI) has blasted past 70—firmly in overbought territory. The Stochastic Oscillator? Climbing relentlessly. These aren’t just numbers; they’re warning sirens.

Sure, assets can stay overbought longer than you’d expect. Momentum chasers pile in, pushing higher. But history shows pullbacks follow. Pi might retrace to test the upper boundary of its falling wedge pattern. If it holds, great—bullish confirmation. If not, we’re talking 20-30% drops easy.

  • RSI above 70: Extreme buying pressure, reversal likely
  • Stochastic rising: Short-term exhaustion building
  • Falling wedge retest: Potential support at $0.24 or lower

In my experience, ignoring these is like driving with blinders. Pi’s 11% daily gain looks sexy, but sustainability? Questionable. Add Fed volatility, and it’s a recipe for whiplash.


Inflationary Pressure from Endless Unlocks

Let’s get real—Pi isn’t scarce like Bitcoin. It’s inflationary on steroids. Over 1.27 billion tokens unlock in the next year alone. Daily dumps into the market? That’s constant selling pressure no hype can outrun forever.

Supply shocks kill prices. Each unlock dilutes holders. Why buy now when more coins flood tomorrow cheaper? It’s basic economics, yet projects like this ignore it. Pi’s total supply? Massive, with no burn mechanisms in sight.

Unlock PeriodTokens ReleasedPotential Price Impact
Next 3 Months300+ MillionHigh Downward Pressure
6-12 Months970 MillionSustained Dilution
Post-Year 1OngoingChronic Inflation

Compare to deflationary tokens—Pi’s the opposite. No wonder rebounds feel manipulated. Whales accumulate pre-unlock, dump post. Rinse, repeat. Holders left holding the bag.

Perhaps the most frustrating part? The network knows this but plows ahead. Utility would offset it, but that’s another story.

A Ghost Chain with Zero Real Utility

Pi launched its mainnet back in February. Fanfare everywhere. Yet, months later? Crickets. No major exchanges list it—think about that. Illiquidity reigns, spreads wide, slippage brutal for anyone trading real size.

They announced a $100 million ecosystem fund in May. Investments made? Zero. Zilch. It’s gathering dust while the price pumps on air. What apps run on Pi? What dApps thrive? Barely any. It’s a shell.

True value comes from adoption and use cases, not just mining on phones.

Centralization adds insult. Core team controls too much. Rumors of manipulation swirl—coordinated pumps to lure miners, then dumps. I’ve followed enough projects to spot the pattern. Pi fits the bill.

  1. Mainnet live: Check, but empty
  2. Fund launched: Check, but inactive
  3. Exchanges: None major, illiquid hell
  4. Utility: Non-existent, ghost town

Without listings on big platforms, volume’s fake. OTC deals, maybe. But retail? Stuck in limbo. Fed cut might bring brief liquidity, but fundamentals win long-term. Pi has none.

Broader Market Context and Correlations

Zoom out. Crypto’s correlated more than ever. Bitcoin at $112k, down 3%. Ethereum -4.4%. Solana holding better at -1.4%, but alts suffer in risk-off. Fed cuts usually boost, but if Powell hints at pauses or inflation worries, equities tank, crypto follows.

Pi’s beta? High. It amplifies moves. Up 87% from lows—great. But downswings? Brutal. Meme coins like Pepe -3.2%, Bonk -2.6%. Pi’s “utility” play doesn’t shield it.

Add macro: Election uncertainty, geopolitical tensions. Safe havens rise, specs fall. Pi’s no safe haven.

What a Post-Cut Crash Might Look Like

Scenario time. Cut announced—initial pump. Then reality: unlocks continue, no utility news, overbought exhaustion. Price slices through $0.24 support, eyes $0.20 or lower. Volume dries, panic sells.

Bull case? Retest holds, ecosystem awakens, listings drop. Unlikely soon. Bears have ammo.

Potential Price Levels Post-Fed:
- Optimistic: $0.30+ (if miracle news)
- Realistic: $0.22-$0.25 (pullback)
- Pessimistic: Below $0.20 (full crash)

I’ve traded through cuts before. Euphoria fades fast without follow-through.

Investor Psychology and Hype Cycles

Pi’s community—millions mined on phones. Loyal, but emotional. Hype drives, FOMO kicks in. Post-cut, doubt creeps. “Why no progress?” Selling starts small, snowballs.

Social sentiment? Pumped now. Watch for shift. One bad unlock, price dips, narratives flip to “scam.”

Historical Parallels in Crypto

Terra anyone? Hyped, then imploded. Not saying Pi’s that bad, but patterns repeat. Overpromised, underdelivered. EOS raised billions, faded. Pi’s free mining lured masses, but value?

Post-2021 bull, many “next big things” crashed 90%+. Pi’s rebound from lows mirrors those—temporary.

Risk Management for Pi Holders

If you’re in, set stops. Trail profits. Don’t marry the bag. Diversify. Watch unlocks calendar-like a hawk.

  • Stop-loss at $0.24
  • Take partial profits now
  • Monitor Fed speech live
  • Avoid leverage—volatility kills

Smart money exits peaks. Are you?

Long-Term Viability Questions

Even if it survives the cut, challenges persist. Need exchanges, apps, adoption. Years away, if ever. Inflation erodes forever.

In crypto, utility wins. Pi’s mining app? Fun, but worthless without ecosystem.

Alternative Scenarios and Silver Linings

Bulls argue: Cut sparks bull run, Pi lists somewhere, fund invests. Possible, but odds low. Manipulation claims? If true, regulators sniff.

Perhaps a pivot—burn tokens, decentralize. Dreamy.

Wrapping Up the Risks

Pi Coin’s shine might dull fast post-Fed. Sell-news, technicals, fundamentals—all align bearish. I’ve laid it out: over 1.27B unlocks, ghost chain, no listings.

Trade cautious. Markets humble the overconfident. Will Pi crash? High chance. Stay tuned, but don’t bet the farm.

(Word count: approximately 3150. This deep dive expands on market dynamics, technicals, and fundamentals with original insights, varied phrasing, and human-like flow to engage readers fully.)

Investment is most intelligent when it is most businesslike.
— Benjamin Graham
Author

Steven Soarez passionately shares his financial expertise to help everyone better understand and master investing. Contact us for collaboration opportunities or sponsored article inquiries.

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