Crypto Assets Rise as Market Awaits Fed Rate Decision and Economic Data
Crypto assets gained traction with Bitcoin rising about 1.9% to near $90,000 as Asia stock markets edged higher at the start of a Fed-dominated week. Traders are pricing in roughly an 85% probability of a 25 basis-point rate cut by the Federal Reserve, with a hold anticipated to be a policy surprise.
Mudrex lead quant analyst Akshat Siddhant noted that a Fed rate cut this week could trigger a Santa rally toward $100,000 for Bitcoin, while $87,500 remains an important support level. Current market snapshot shows Bitcoin at $91,256 (+1.9%), Ether at $3,114 (+2.1%), XRP at $2.07 (+0.9%), and the total crypto market capitalization at $3.18 trillion (+1.3%).
U.S. equity futures remained little changed with key earnings reports from Oracle, Broadcom, and Costco expected to offer insights into AI infrastructure demand, chip demand, and consumer spending respectively. The dollar path and Fed timing continue to influence crypto liquidity and the attractiveness of hard assets, with Bitcoin discussed as a long-term hedge against currency debasement.
This week also features central bank meetings in Canada, Switzerland, and Australia. The Swiss National Bank is expected to maintain policy at 0% and avoid negative rates.
The week ahead includes Monday's FOMC meeting with a possible start of quantitative easing, Tuesday's inflation data release, Wednesday's FOMC meeting and anticipated rate cuts, followed by Friday's balance sheet actions and Federal Reserve Chair Powell's resignation as noted in the report.
