The post Potential Rate Cut Raises Questions appeared on BitcoinEthereumNews.com. Key Points: Federal Reserve may cut rates and influence market liquidity. Powell emphasizes data-driven decisions amid divided FOMC. Market anticipates on easing USD liquidity affecting crypto. The Federal Reserve’s December 9–10 FOMC meeting, chaired by Jerome Powell, focuses on another anticipated rate cut and how future easing will be communicated. The outcome could influence U.S. economic policy direction, impacting financial markets and risk assets, including cryptocurrencies, through anticipated USD liquidity changes. FOMC Rate Cut Likely to Shape Crypto Markets The December FOMC meeting is expected to result in a rate cut. This mirrors the recent decision, where rates were decreased by 25 basis points. Chair Powell emphasizes a data-dependent policy amidst a divided committee, with hawks and doves split on next steps. A Fed rate cut affects USD liquidity by easing financial conditions. The decision may impact risk assets, including cryptocurrencies, due to potential changes in discount rates and leveraged strategies. Powell’s tone remains crucial for upcoming monetary policy guidance. Market reactions center on Powell’s communication strategy amidst a divided FOMC. Analysts anticipate a hawkish rate cut where rates are reduced without committing to further easing in January. Powell’s stance is pivotal for determining future rate adjustments based on labor market data. Fed Decisions and Bitcoin Price Movements Correlation Did you know? Past attempts at hawkish rate cuts often led to significant market speculation, reflecting uncertainty amid dual signals of rate reduction and cautious outlooks on further easing. Bitcoin’s current price is $91,250.67 with a market cap of $1.82 trillion, according to CoinMarketCap. The dominant cryptocurrency holds a market dominance of 58.73%. Recently, Bitcoin experienced a 1.85% rise in value over 24 hours, though it decreased by 10.99% over 30 days. Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 05:01 UTC on December 8, 2025. Source: CoinMarketCap Coincu research highlights that… The post Potential Rate Cut Raises Questions appeared on BitcoinEthereumNews.com. Key Points: Federal Reserve may cut rates and influence market liquidity. Powell emphasizes data-driven decisions amid divided FOMC. Market anticipates on easing USD liquidity affecting crypto. The Federal Reserve’s December 9–10 FOMC meeting, chaired by Jerome Powell, focuses on another anticipated rate cut and how future easing will be communicated. The outcome could influence U.S. economic policy direction, impacting financial markets and risk assets, including cryptocurrencies, through anticipated USD liquidity changes. FOMC Rate Cut Likely to Shape Crypto Markets The December FOMC meeting is expected to result in a rate cut. This mirrors the recent decision, where rates were decreased by 25 basis points. Chair Powell emphasizes a data-dependent policy amidst a divided committee, with hawks and doves split on next steps. A Fed rate cut affects USD liquidity by easing financial conditions. The decision may impact risk assets, including cryptocurrencies, due to potential changes in discount rates and leveraged strategies. Powell’s tone remains crucial for upcoming monetary policy guidance. Market reactions center on Powell’s communication strategy amidst a divided FOMC. Analysts anticipate a hawkish rate cut where rates are reduced without committing to further easing in January. Powell’s stance is pivotal for determining future rate adjustments based on labor market data. Fed Decisions and Bitcoin Price Movements Correlation Did you know? Past attempts at hawkish rate cuts often led to significant market speculation, reflecting uncertainty amid dual signals of rate reduction and cautious outlooks on further easing. Bitcoin’s current price is $91,250.67 with a market cap of $1.82 trillion, according to CoinMarketCap. The dominant cryptocurrency holds a market dominance of 58.73%. Recently, Bitcoin experienced a 1.85% rise in value over 24 hours, though it decreased by 10.99% over 30 days. Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 05:01 UTC on December 8, 2025. Source: CoinMarketCap Coincu research highlights that…

Potential Rate Cut Raises Questions

2025/12/08 13:14
Key Points:
  • Federal Reserve may cut rates and influence market liquidity.
  • Powell emphasizes data-driven decisions amid divided FOMC.
  • Market anticipates on easing USD liquidity affecting crypto.

The Federal Reserve’s December 9–10 FOMC meeting, chaired by Jerome Powell, focuses on another anticipated rate cut and how future easing will be communicated.

The outcome could influence U.S. economic policy direction, impacting financial markets and risk assets, including cryptocurrencies, through anticipated USD liquidity changes.

FOMC Rate Cut Likely to Shape Crypto Markets

The December FOMC meeting is expected to result in a rate cut. This mirrors the recent decision, where rates were decreased by 25 basis points. Chair Powell emphasizes a data-dependent policy amidst a divided committee, with hawks and doves split on next steps.

A Fed rate cut affects USD liquidity by easing financial conditions. The decision may impact risk assets, including cryptocurrencies, due to potential changes in discount rates and leveraged strategies. Powell’s tone remains crucial for upcoming monetary policy guidance.

Market reactions center on Powell’s communication strategy amidst a divided FOMC. Analysts anticipate a hawkish rate cut where rates are reduced without committing to further easing in January. Powell’s stance is pivotal for determining future rate adjustments based on labor market data.

Fed Decisions and Bitcoin Price Movements Correlation

Did you know? Past attempts at hawkish rate cuts often led to significant market speculation, reflecting uncertainty amid dual signals of rate reduction and cautious outlooks on further easing.

Bitcoin’s current price is $91,250.67 with a market cap of $1.82 trillion, according to CoinMarketCap. The dominant cryptocurrency holds a market dominance of 58.73%. Recently, Bitcoin experienced a 1.85% rise in value over 24 hours, though it decreased by 10.99% over 30 days.

Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 05:01 UTC on December 8, 2025. Source: CoinMarketCap

Coincu research highlights that potential impacts from Fed decisions could lead to financial and technological shifts within crypto. Historical easing has coincided with bull markets, suggesting increased crypto market activity should Powell signal further support for liquidity.

Source: https://coincu.com/analysis/fed-december-meeting-rate-cut/

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

UK Looks to US to Adopt More Crypto-Friendly Approach

UK Looks to US to Adopt More Crypto-Friendly Approach

The post UK Looks to US to Adopt More Crypto-Friendly Approach appeared on BitcoinEthereumNews.com. The UK and US are reportedly preparing to deepen cooperation on digital assets, with Britain looking to copy the Trump administration’s crypto-friendly stance in a bid to boost innovation.  UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent discussed on Tuesday how the two nations could strengthen their coordination on crypto, the Financial Times reported on Tuesday, citing people familiar with the matter.  The discussions also involved representatives from crypto companies, including Coinbase, Circle Internet Group and Ripple, with executives from the Bank of America, Barclays and Citi also attending, according to the report. The agreement was made “last-minute” after crypto advocacy groups urged the UK government on Thursday to adopt a more open stance toward the industry, claiming its cautious approach to the sector has left the country lagging in innovation and policy.  Source: Rachel Reeves Deal to include stablecoins, look to unlock adoption Any deal between the countries is likely to include stablecoins, the Financial Times reported, an area of crypto that US President Donald Trump made a policy priority and in which his family has significant business interests. The Financial Times reported on Monday that UK crypto advocacy groups also slammed the Bank of England’s proposal to limit individual stablecoin holdings to between 10,000 British pounds ($13,650) and 20,000 pounds ($27,300), claiming it would be difficult and expensive to implement. UK banks appear to have slowed adoption too, with around 40% of 2,000 recently surveyed crypto investors saying that their banks had either blocked or delayed a payment to a crypto provider.  Many of these actions have been linked to concerns over volatility, fraud and scams. The UK has made some progress on crypto regulation recently, proposing a framework in May that would see crypto exchanges, dealers, and agents treated similarly to traditional finance firms, with…
Share
BitcoinEthereumNews2025/09/18 02:21
Why is Bitcoin (BTC) Trading Lower Today?

Why is Bitcoin (BTC) Trading Lower Today?

The post Why is Bitcoin (BTC) Trading Lower Today? appeared on BitcoinEthereumNews.com. Bitcoin BTC$90,457.05, the leading cryptocurrency by market value, is down following the overnight Fed rate cut. The reason likely lies in the Fed’s messaging, which has made traders less excited about future easing. The Fed on Wednesday cut the benchmark interest rate by 25 basis points to 3.25% as expected and announced it will begin purchasing short-term Treasury bills to manage liquidity in the banking system. Yet, BTC traded below $90,000 at press time, representing a 2.4% decline since early Asian trading hours, according to CoinDesk data. Ether was down 4% at $3,190, with the CoinDesk 20 Index down over 4%. The risk-off action is likely due to growing signs of internal Fed divisions on balancing inflation control against employment goals, coupled with signals of a more challenging path for future rate cuts. Two members voted for no change on Wednesday, but individual forecasts revealed that six FOMC members felt that a cut wasn’t “appropriate.” Besides, the central bank suggested just one more rate cut in 2026, disappointing expectations for two to three rate cuts. “The Fed is divided, and the market has no real insight into the future path of rates from now until May 2026, when Chairman Jerome Powell will be replaced. The replacement of Powell with a Trump loyalist (who will push to lower rates aggressively) is likely the most reliable signal for rates. Until then, however, there are still 6 months to go,” Greg Magadini, director of derivatives at Amberdata, told CoinDesk. He added that the most likely occurrence as of now is a needed “deleveraging” or down-market” to convince the Fed of lower rates decidedly. Shiliang Tang, managing partner of Monarq Asset Management, said BTC is following the stock market lower. “Crypto markets initially spiked on the news but have steadily moved lower since, in conjunction with…
Share
BitcoinEthereumNews2025/12/11 17:27