Crypto prices are edging higher as traders position for the Federal Reserve’s December rate decision and a possible shift in liquidity.
Summary
– Bitcoin, Ethereum and major altcoins rose ahead of the Fed decision.
– Traders expect a 25-basis-point cut; historical reactions have been mixed.
– Analysts warn of short-term swings; key support near $87,000 for Bitcoin.
The total cryptocurrency market value rose about 3% to $3.2 trillion, extending a quiet recovery across major assets. Bitcoin gained 2.3% in the past day to $92,496, while Ethereum climbed 6% to $3,312. Solana rose 3.9% to $138.
Mid-cap names posted larger moves: Zcash up 11% to $440, Avalanche up 6.2% to $14, and Monero up 5.4% to $390. Sentiment slightly improved as the Crypto Fear & Greed Index moved from 22 to 26, exiting “extreme fear.” Liquidations totaled $429 million, a 106% rise over the last day, suggesting traders adjusted leverage ahead of the announcement. Open interest rose 3% to $133 billion, and the market-wide RSI held near a neutral 51.
Fed decision sets the tone for short-term moves
The Federal Reserve will release its December 2025 rate decision at 2:00 p.m. ET (4:00 p.m. UTC). Markets largely expect a 25-basis-point cut and are focused on any guidance for 2026. If a cut is confirmed and the dot plot signals multiple reductions next year, liquidity could increase—potentially lifting Bitcoin toward $92,000–$95,000 and triggering short-liquidation cascades exceeding $120 million that would add volatility.
CryptoQuant notes Bitcoin’s uneven responses around rate cuts; past cuts produced rallies that were followed by pullbacks. A “buy the rumor, sell the news” outcome remains possible if the cut matches expectations.
Key analyst short-term outlooks
– Tom Lee (Fundstrat): expects a relief rally, targeting $100,000–$110,000 by year-end.
– CoinDCX Research: sees roughly 22% upside with a base case near $111,000 and potential to $130,000–$140,000 if spot ETF inflows intensify.
– Cathie Wood: more cautious—Bitcoin needs to hold around $87,000 to avoid a deeper pullback if the Fed signals fewer cuts or inflation concerns.
CryptoQuant recommends monitoring leverage metrics, exchange reserves and ETF flows as primary indicators. They emphasize that market reaction will depend more on Chair Powell’s tone and forward guidance than on the cut itself.
