Federal Reserve's December Meeting Focuses on Interest Rates
The Federal Reserve is contemplating a 25 basis points rate cut during its December 2025 meeting. Reports suggest significant internal divisions within the Federal Reserve’s leadership could affect the outcome. Bank of America anticipates Powell might signal further cuts are contingent on notably weak employment data. This stance aligns with the evolving economic landscape and informs market expectations.
A rate cut, if confirmed, would reduce funding costs, potentially influencing asset prices globally. Risk assets, including cryptocurrencies, would see adjusted valuations as market sentiment shifts. If Powell signals possible future cuts based on economic data, this could lead to broader discussions on monetary policy implications.
Market reactions have been varied, with some investors predicting a beneficial impact on cryptocurrencies like Bitcoin and Ethereum. These assets, sensitive to monetary policy changes, tend to respond strongly to alterations in interest rates. Historical trends indicate dovish guidance usually supports crypto markets, while hawkish signals might dampen sentiment.
"Future cuts are not a foregone conclusion and are data-dependent." — Jerome Powell, Chair, Federal Reserve
Cryptocurrency Markets Eye Fed's Rate Decision Impact
A cut in Fed interest rates previously drove Bitcoin's value higher in 2020 by enhancing liquidity and reducing the cost of leverage across risk assets.
As of December 10, 2025, Bitcoin (BTC) holds a market cap of $1.83 trillion with a price of $91,879.41. Over the past 24 hours, BTC's price has risen by 1.96%. However, it shows a decline of 0.51% over the past week and a more significant drop of 19.55% over the last 90 days.
Insights from the Coincu research team highlight potential outcomes stemming from these macroeconomic considerations. A sustained easing cycle might positively influence risky assets but will depend on the overall economic environment. Historical data suggest dovish policies often benefit cryptocurrencies, yet any further decision delay could weigh on sentiment.