Cryptocurrency Markets Volatile Ahead of Federal Reserve Meeting with Rate Cuts Expected
Bitcoin briefly traded above $94,000 before retreating to about $92,500 as traders awaited a key Federal Reserve decision and Chair Jerome Powell's final 2025 press conference.
Ether rose about 7% to around $3,320, extending its weekly gain to roughly 10%. Solana and Cardano also saw gains, up over 5% and 8.5% respectively on the day. XRP increased 2% over 24 hours but was down about 4% for the week. BNB, USDC, and TRX remained flat.
Market depth in smaller tokens remained thin, reflecting uneven liquidity in December. Bitcoin's rebound was aided by a surge in social sentiment, with Santiment noting renewed retail optimism and FOMO. However, sentiment cooled later when Bitcoin slipped back under $93,000 during late Asian trading, renewing questions about whether the move was meaningful or a stop-hunt in the $86,000 to $94,000 range.
Some analysts view the spike in volatility as exhaustion; CF Benchmarks reported realized volatility rising above implied volatility for the first time in months, a pattern that has historically coincided with a bottoming phase. Bitget CEO Gracy Chen commented that crypto remains more vulnerable than equities and that Bitcoin’s $86,000 to $94,000 range indicates a lack of anchors for a decisive move.
In global markets, Chinese stocks fell on higher inflation in November; Japanese equities dipped while South Korea and Taiwan markets edged higher. Silver hit a record high, and the dollar steadied as investors weigh possible central-bank easing into 2026.
Looking ahead, the next major move for Bitcoin depends on reclaiming the $94,000 to $96,000 band after Powell's remarks or a macro-risk shift pushing BTC toward the mid-$80,000 range.
