FOMC Meets Today as Markets Brace for Potential Crypto Volatility
Today, December 9, the (FOMC) begins its essential meeting. It will end tomorrow, and global markets will be watching closely.
As investors try to figure out what inflation, labour conditions, and the road forward to 2026 mean for stocks, bonds, and digital assets, this last policy meeting of 2025 is crucial.
Everyone is waiting for the federal funds rate call, new economic forecasts, and Fed Chair Jerome Powell’s press conference on December 10 at 2:30 p.m. ET.
A 25-Basis-Point Trim Is Very Likely
Futures prices an 80%-92% chance of a 25-basis-point rate decrease, which would lower the federal funds rate target to 3.50%–3.75% and mark the third cut this year. say that any stop or sudden rise might shake things up, causing quick changes in both the traditional and crypto markets.
The Summary of Economic Projections, based on the dot plot, shows that is expected to increase by 2.1%, unemployment is expected to remain around 4.2%, and core inflation is expected to remain around 2.5%. Most people think there will be three or four further cuts in 2026.
Cryptocurrency Prepares for Policy Ripple Effects
Digital traders are preparing for a significant FOMC crypto reaction, as assets have a history of responding strongly to changes in U.S. . Based on what the Fed is saying, more than $1 billion in open interest is at risk of being liquidated.
BTC remains in the $90,500 to $91,500 range, and nears $3,100. A confirmed cut and a dovish dot plot might increase liquidity, pushing BTC up to $92,000–$95,000 and causing short liquidations of more than $120 million, which would contribute to the chaos.
Hawkish Risks Could Put Pressure on Altcoins
A hawkish cut or a constant rate policy could rapidly shift the mood, prompting players to take profits in high-beta positions as they switch to a defensive stance.
could then drop to between $88,000 and $89,000; altcoins might view more tradeing, and ETH could fall below $3,000 to assist derivatives unwind.
Even though there is a lot of uncertainty, the mood is cautiously optimistic. Retail investors are worried about price swings, while institutions are building up their positions. Any drops in BTC or ETH that align with a dovish stance could attract purchaviewrs.
Powell’s Tone Will Affect the Future
The rate decision, updates to projections, and Powell’s statements will all affect the overall mood and the price of cryptocurrencies, preparing traders for large price swings around the reveal.
How the balances inflation and growth here could set the stage for how digital assets will behave in 2026. The markets are closely monitoring the developments of this December crossroads.
