Bitcoin Approaches $92,000 as Markets Await Fed Rate Decision
Bitcoin is trading near $92,000, up about 2.5% as the Federal Reserve's final rate decision of the year approaches. The total cryptocurrency market capitalization has risen around 2.8% to $3.24 trillion, with Bitcoin at $92,479, Ether at $3,308, and XRP at $2.09.
Asian stocks have slipped in line with a softer Wall Street session where the S&P 500 ended slightly lower. JPMorgan has warned of higher expenses anticipated in 2026. The Fed's two-day meeting is underway with futures currently pricing in an approximate 25 basis points rate cut.
Market focus remains on Fed Chair Jerome Powell's messaging regarding the path of rate cuts, as efforts continue to minimize internal dissent amid uncertainties over the number and pace of future cuts. Some market observers suggest that political considerations could influence the timing of a cut, with Powell possibly delivering hawkish language to offset easing measures.
If Powell adopts a hawkish stance, the year-end Bitcoin Santa rally may be diminished, with Bitcoin's momentum viewed as weak and a potential 2025 year-end finish beneath $100,000. Recent inflation and labor data add to policy ambiguity; October job openings increased marginally, and NFIB hiring plans indicate upcoming hiring activity.
The Fed's dot plot and Powell's press conference remain key drivers of market volatility. Money markets currently price in about two rate cuts for 2026, with a slower easing path implying tighter dollar liquidity and increased pressure on liquidity-driven crypto rallies.
Speculation about Fed leadership includes Kevin Hassett as a potential replacement for Powell. Hassett advocates for substantial rate cuts, and any leadership changes could meaningfully influence the policy stance in 2026.
