The Federal Reserve's final 2025 meeting, scheduled for December 9–10, is poised to be a significant event for the cryptocurrency market. Chaired by Jerome Powell, this meeting will address anticipated rate cuts and the conclusion of quantitative tightening, factors that are expected to influence major cryptocurrencies like Bitcoin and Ethereum.
Monetary Policy and Market Expectations
The Federal Reserve's planned meeting on December 9–10, 2025, signals potential changes in monetary policy. Jerome Powell, Chair of the Federal Reserve, stated, "The final 2025 FOMC meeting on December 9–10, 2025, will include an official policy statement at 2:00 p.m. ET and a press conference afterward." Expectations for a rate cut are prevalent in market discussions, with the end of quantitative tightening reinforcing a narrative of cautious recovery for cryptocurrencies.
The FedWatch Tool from CME indicates an 80–90% probability of a 25 basis point rate cut. Markets are adjusting to this anticipated shift, aligning the outlooks for BTC, ETH, and altcoins with the potential impacts of policy easing.
Impact on Cryptocurrency Volatility and Liquidity
The Federal Reserve’s decision will directly affect cryptocurrency market volatility. Bitcoin (BTC) and Ethereum (ETH) have historically demonstrated sensitivity to adjustments in US monetary policy, and recent trends already reflect anticipatory pricing.
Financial markets are bracing for the FOMC outcome, which carries implications for systemic liquidity. Major banks anticipate adjustments in their trading strategies, recognizing the risks associated with speculative trades and potential price swings following the announcement.
Future Market Outlook
Looking ahead, market participants and analysts foresee potential structural impacts on various assets. Macro-economic policies are expected to influence crypto's risk assessments and drive liquidity dynamics into 2026.
Traders are considering the historical pattern where rate cut announcements have impacted short-term crypto prices. Institutional predictions underscore a cautionary stance, yet the potential for long-term growth in the crypto sector remains consistent with Fed-led liquidity trends.