Daily Market Update: Bitcoin Holds Steady as Markets Await Jerome Powell Statement

TLDR

• Bitcoin dropped to $92,500 after briefly hitting $94,000 as traders await Wednesday’s Federal Reserve policy decision
• Federal Reserve expected to cut rates by 0.25% with 90% probability according to CME FedWatch tool
• Ether climbed 7% to $3,320 and Cardano surged 8.5% before both cryptocurrencies pulled back in Asian trading
• Stock market futures showed minimal movement with Dow, S&P 500, and Nasdaq holding near flat levels
• Jerome Powell’s 2 p.m. ET press conference will provide guidance on future monetary policy direction

Bitcoin experienced sharp volatility on Tuesday as the cryptocurrency briefly surged past $94,000. The gains proved short-lived as prices retreated to $92,500 during Asian trading hours Wednesday.

The pullback comes as global markets await the Federal Reserve’s final policy meeting of 2025. Investors are positioning for what many expect to be a third consecutive interest rate cut.

According to the CME FedWatch tool, markets are pricing in a 90% probability of a 0.25% rate reduction. The Federal Reserve will announce its decision at 2 p.m. ET Wednesday.

Fed Chair Jerome Powell will hold a press conference following the announcement. Traders are looking for clues about the central bank’s policy path into 2026.

Stock Futures Hold Steady Before Fed Announcement

US stock futures showed minimal movement ahead of the policy decision. Dow Jones Industrial Average futures, S&P 500 contracts, and Nasdaq 100 futures all held just above the flatline.

Tuesday’s trading session offered little direction as investors avoided major bets. The Dow led declines, pressured by weakness in JPMorgan shares.

The Nasdaq Composite managed a small gain. Tesla and Alphabet provided support for the technology-heavy index.

Wall Street has traded sideways for several sessions. Investors are waiting for the Fed to provide the next market catalyst.

Cryptocurrency Markets Show Mixed Performance

Altcoins displayed varied performance during the 24-hour trading period. Ether gained 7% to reach $3,320, extending its weekly advance to nearly 10%.

Cardano led major cryptocurrencies with an 8.5% single-day jump. Solana added over 5% while dogecoin advanced 5%.

However, all tokens gave back 1-2% in Asian morning hours. Market participants likely locked in profits following the overnight rally.

XRP posted a modest 2% gain over 24 hours but remains down 4% for the week. BNB, USDC, and TRX showed little movement.

Trading volume in smaller tokens remained light. Thin liquidity has been a defining feature of December market activity.

Bitcoin Trading Range Remains Intact

Bitcoin continues to consolidate within a $86,000 to $94,000 range. Technical analysts are divided on whether recent price action signals a trend reversal.

CF Benchmarks research analyst Mark Pilipczuk identified a classic volatility spike pattern. Realized volatility exceeded implied volatility for the first time in months.

This technical crossover has occurred eight times in bitcoin’s history. Six of those instances coincided with price bottoms and subsequent recoveries.

Bitget CEO Gracy Chen commented that the market lacks sufficient drivers for a decisive move. Bitcoin’s broad trading range reflects ongoing uncertainty.

Social sentiment data from Santiment showed a surge in retail optimism when prices touched $94,000. The blockchain analytics firm noted traders displayed fear of missing out on potential gains.

Federal Reserve officials remain divided on the appropriate policy stance. Some members advocate for continued easing to support labor market conditions while others express concern about inflation risks.

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