Beware, dear reader, for the Federal Reserve’s final FOMC meeting of 2025 is upon us, with markets whispering of a possible rate cut that could send risk sentiment into a tizzy for 2026. 🧙♂️
00 p.m. ET, followed by Powell’s press conference at 2:30 p.m. ET. Minutes come three weeks later, on Jan. 8, 2026. 📅
Rate decision and economic projections in focus
Markets now think there’s an 87% chance the FOMC will cut rates by 25bp, bringing it to 3.50%-3.75%. But committee members are divided like a chocolate fountain. 🍫
Citing conflicting inflation data and strong GDP growth, some have voiced caution. Analysts will watch the dot plot like a hawk, hoping for more easing in 2026. If inflation drops, another 50bp cut might follow. 🦅
The meeting will confirm the end of QT on Dec. 1, which stopped a $95 billion-per-month reduction in securities. This could boost market liquidity. 🧮
The FOMC meeting in December is particularly significant because it includes the Summary of Economic Projections, which guides inflation, growth, and rates. While currency traders modify their positions based on expectations for future policy, stock and bond markets frequently respond swiftly to these developments. 📈
Implications for the crypto markets
Cryptocurrency markets are like children with candy, sensitive to Fed decisions. Lower rates and more liquidity encourage risk-taking, pushing money into Bitcoin, Ethereum, and altcoins. 🚀
Experts think a 25-point rate cut might boost crypto. If history repeats, Bitcoin could hit $95k-$100k, with Ethereum and Solana following. 🧙♀️
On the other hand, if the Fed takes a hawkish pause, Bitcoin might dip to $87k-$90k, and altcoins face pressure. Options data shows volatility could jump 20-30%. 🧨
Whatever Dec. 10 brings, it’ll influence risk assets and sentiment into 2026. 🌟
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2025-12-08 12:07