The post Expectations and how market could react appeared on BitcoinEthereumNews.com. As the FOMC meeting kicks off, markets are focused on a likely rate cut and how it could possibly sway crypto market volatility. Summary FOMC meets Dec. 9–10 to review U.S. economic data and monetary policy. Markets expect a 25-basis-point cut and updated dot plot projections. Crypto could move sharply; BTC may rise if the Fed signals dovish policy. The Federal Open Market Committee will begin its December 2025 meeting today, Dec. 9, and will conclude tomorrow, Dec. 10. As the final meeting of the year, it has drawn significant market attention. Investors will be watching the federal funds rate decision, the updated economic projections, and Chair Jerome Powell’s press conference for insights on inflation, labor-market conditions, and the direction of monetary policy heading into 2026. Expected rate cut and economic projections Markets are currently projecting an 80% to 92% probability of a 25-basis-point rate cut, which would lower the federal funds target range to 3.50%–3.75%. Such a move would represent the third consecutive reduction this year. While a pause, or an unexpected increase, is viewed as unlikely, even a small departure from expectations could prompt swift market volatility. In addition to the rate decision, the Federal Reserve will release its Summary of Economic Projections, including the closely followed dot plot. Analysts predict a gross domestic product growth of roughly 2.1%, an unemployment rate close to 4.2%, and core inflation of about 2.5%. The dot plot will provide insight into policymakers’ outlook for 2026, with the consensus indicating three to four more rate cuts. Powell will give more details about the Fed’s outlook at his press conference on Dec. 10 at 2:30 p.m. ET. He is also expected to discuss the potential slowdown of quantitative tightening. Potential crypto market reaction to FOMC meeting Cryptocurrency markets, which tend to react sharply… The post Expectations and how market could react appeared on BitcoinEthereumNews.com. As the FOMC meeting kicks off, markets are focused on a likely rate cut and how it could possibly sway crypto market volatility. Summary FOMC meets Dec. 9–10 to review U.S. economic data and monetary policy. Markets expect a 25-basis-point cut and updated dot plot projections. Crypto could move sharply; BTC may rise if the Fed signals dovish policy. The Federal Open Market Committee will begin its December 2025 meeting today, Dec. 9, and will conclude tomorrow, Dec. 10. As the final meeting of the year, it has drawn significant market attention. Investors will be watching the federal funds rate decision, the updated economic projections, and Chair Jerome Powell’s press conference for insights on inflation, labor-market conditions, and the direction of monetary policy heading into 2026. Expected rate cut and economic projections Markets are currently projecting an 80% to 92% probability of a 25-basis-point rate cut, which would lower the federal funds target range to 3.50%–3.75%. Such a move would represent the third consecutive reduction this year. While a pause, or an unexpected increase, is viewed as unlikely, even a small departure from expectations could prompt swift market volatility. In addition to the rate decision, the Federal Reserve will release its Summary of Economic Projections, including the closely followed dot plot. Analysts predict a gross domestic product growth of roughly 2.1%, an unemployment rate close to 4.2%, and core inflation of about 2.5%. The dot plot will provide insight into policymakers’ outlook for 2026, with the consensus indicating three to four more rate cuts. Powell will give more details about the Fed’s outlook at his press conference on Dec. 10 at 2:30 p.m. ET. He is also expected to discuss the potential slowdown of quantitative tightening. Potential crypto market reaction to FOMC meeting Cryptocurrency markets, which tend to react sharply…

Expectations and how market could react

2025/12/09 15:29

As the FOMC meeting kicks off, markets are focused on a likely rate cut and how it could possibly sway crypto market volatility.

Summary

  • FOMC meets Dec. 9–10 to review U.S. economic data and monetary policy.
  • Markets expect a 25-basis-point cut and updated dot plot projections.
  • Crypto could move sharply; BTC may rise if the Fed signals dovish policy.

The Federal Open Market Committee will begin its December 2025 meeting today, Dec. 9, and will conclude tomorrow, Dec. 10. As the final meeting of the year, it has drawn significant market attention.

Investors will be watching the federal funds rate decision, the updated economic projections, and Chair Jerome Powell’s press conference for insights on inflation, labor-market conditions, and the direction of monetary policy heading into 2026.

Expected rate cut and economic projections

Markets are currently projecting an 80% to 92% probability of a 25-basis-point rate cut, which would lower the federal funds target range to 3.50%–3.75%. Such a move would represent the third consecutive reduction this year.

While a pause, or an unexpected increase, is viewed as unlikely, even a small departure from expectations could prompt swift market volatility.

In addition to the rate decision, the Federal Reserve will release its Summary of Economic Projections, including the closely followed dot plot. Analysts predict a gross domestic product growth of roughly 2.1%, an unemployment rate close to 4.2%, and core inflation of about 2.5%.

The dot plot will provide insight into policymakers’ outlook for 2026, with the consensus indicating three to four more rate cuts. Powell will give more details about the Fed’s outlook at his press conference on Dec. 10 at 2:30 p.m. ET. He is also expected to discuss the potential slowdown of quantitative tightening.

Potential crypto market reaction to FOMC meeting

Cryptocurrency markets, which tend to react sharply to shifts in U.S. monetary policy, are preparing for increased volatility.  More than $1 billion in open positions may be at risk of liquidation depending on the Fed’s guidance.

Bitcoin is currently consolidating in the $90,500–$91,500 range, while Ethereum is trading around $3,100. If a confirmed 25-basis-point cut is paired with a dovish dot plot that predicts multiple reductions in 2026, market liquidity would likely increase.

In this scenario, Bitcoin could rise to between $92,000 and $95,000 and short liquidation cascades worth more than $120 million could occur, triggering more volatility.

On the other hand, a “hawkish cut” or an unexpected pause could result in profit-taking and a general risk-off attitude. This would drive Bitcoin towards the $88,000–$89,000 range and add pressure to altcoins, with Ethereum potentially falling below $3,000.

The market is still cautiously optimistic. While retail traders show increased anxiety, institutions continue to accumulate, indicating that if policy is in line with dovish expectations, dips may present buying opportunities.

Source: https://crypto.news/fomc-meeting-today-what-to-expect-crypto-market-2025/

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 [email protected] 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

“Bitcoin After Dark” ETF targets gains while the world sleeps

“Bitcoin After Dark” ETF targets gains while the world sleeps

The post “Bitcoin After Dark” ETF targets gains while the world sleeps appeared on BitcoinEthereumNews.com. A proposed exchange-traded fund is built to chase Bitcoin’s price action while the U.S. market is shut on Wall Street. The product is named the Nicholas Bitcoin and Treasuries AfterDark ETF, according to a filing dated December 9 was sent to the Securities and Exchange Commission. The fund opens Bitcoin-linked trades “after the U.S. financial markets close” and exits those positions “shortly after the next day’s open.” Trading is locked into the overnight window, and of course the fund will not hold Bitcoin directly. At least 80% of assets would be used on Bitcoin futures, exchange-traded products, other Bitcoin ETFs, and options tied to those ETFs and ETPs. The rest can sit in Treasuries. The filing said that the goal is to use price action that forms when the equity market is offline. Exposure stays inside listed products only. No spot tokens, no on-chain custody, and all positions reset each morning after the open. After-hours trading drives ETF flows Bespoke Investment Group tracked a test using the iShares Bitcoin Trust ETF (IBIT), and reported that “buying at the U.S. market close and selling at the next open since January 2024 produced a 222% gain.” The same test flipped to daytime only showed “a 40.5% loss from buying at the open and selling at the close.” That gap is the return spread the AfterDark ETF is built to target. Source: Bespoke Bitcoin last traded at $92,320, down nearly 1% on the day, down about 12% over the past month, and little changed since the start of the year. ETF filings across crypto keep expanding. Products tied to Aptos, Sui, Bonk, and Dogecoin are now in the pipeline. The pace picked up after President Donald Trump pushed for softer rules at the SEC and the Commodity Futures Trading Commission. After that push,…
Share
BitcoinEthereumNews2025/12/11 07:46
Fed Acts on Economic Signals with Rate Cut

Fed Acts on Economic Signals with Rate Cut

In a significant pivot, the Federal Reserve reduced its benchmark interest rate following a prolonged ten-month hiatus. This decision, reflecting a strategic response to the current economic climate, has captured attention across financial sectors, with both market participants and policymakers keenly evaluating its potential impact.Continue Reading:Fed Acts on Economic Signals with Rate Cut
Share
Coinstats2025/09/18 02:28