Hassan Maishera
TL;DR
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BTC is up 3% in the last 24 hours and is currently trading above $92k.
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The Fed will make its final interest rate decision of the year today, with analysts expecting another rate cut.
Bitcoin Stabilizes Above $92k As Traders Expect a Rate Cut
The cryptocurrency market has been volatile since the start of the month, with Bitcoin hitting the $94k level on Tuesday. However, it has now stabilized above $92k ahead of today’s FOMC meeting.
This will be the final Fed meeting in 2025, with analysts and market participants expecting the Federal Reserve to cut interest rates by at least 25 basis points. YouHodler's Ruslan Lienkha told Cryptowisser that he believes the anticipated Fed rate cut is largely priced in. In this context, Bitcoin appears relatively weak.
“I lean toward a more cautious scenario. From my perspective, an expected rate cut amid slightly rising inflation may be driven more by political considerations than by sound economic reasoning. I anticipate that the Fed Chair may attempt to offset the impact of the cut with hawkish rhetoric. However, as the rate cut is already largely priced in, a hawkish message could increase selling pressure on the already fragile U.S. equity markets, which could, in turn, negatively affect BTC and the broader crypto market,” the analyst added.
Nic Puckrin, investment analyst and co-founder of The Coin Bureau, also pointed out that if the Fed Chair Jerome Powell delivers a hawkish speech, the likelihood of a Santa rally for Bitcoin diminishes. Momentum hasn’t been on Bitcoin’s side lately, despite fresh purchases by Michael Saylor’s Strategy, so we may well finish 2025 under $100,000.
The FOMC meeting could set the tone for Bitcoin’s performance heading into the new year.
