The Federal Reserve is widely expected to hold interest rates unchanged for a second straight FOMC meeting, with markets having mostly priced in a pause. Investors will instead focus on the dot plot and Chair Powell’s press conference for clues on the timing of future cuts.
Markets turned risk-off after President Trump rejected an Iran deal and demanded surrender, sending oil higher while Bitcoin and equities dipped. A muddier Fed outlook — with labor slowing even as inflation shows signs of worsening — added pressure on risk assets.
Minneapolis Fed president Neel Kashkari said cryptocurrencies are "utterly useless" and described stablecoins as a "buzzword salad," arguing stablecoins aren't an improvement over Venmo and fail basic real-world viability tests.
Bitcoin is headed for a fifth straight weekly decline as rising Middle East tensions lift the U.S. dollar and sap demand for risk assets, while U.S. stock futures firm ahead of Walmart earnings and upcoming Fed minutes.
The Federal Reserve will buy $55 billion in Treasury bills as it resumes expanding its balance sheet, fueling hopes that added liquidity could support a crypto market rally. Traders and analysts say the move may ease financial conditions and lift risk assets, including Bitcoin and Ethereum.
On Dec. 10, 2025 the Federal Reserve cut the federal funds rate by 25 basis points to a 3.0%–3.5% target range, a move widely priced into CME futures and prediction markets like Polymarket and Kalshi. The decision reinforces a more accommodative stance that could matter for crypto and risk assets.
The Federal Reserve has stopped shrinking its balance sheet, ending quantitative tightening and shifting liquidity dynamics in favor of risk assets. Crypto markets may see renewed inflows and reduced funding stress, though macro risks remain.
Representative Stephen Lynch pressed Fed governor Michelle Bowman about remarks she made on digital assets at a November conference in Madrid, sparking a heated exchange as lawmakers debated oversight. The hearing highlighted growing congressional frustration over regulatory gaps for stablecoins.
Ethereum dipped below $2,700 after a stronger-than-expected US jobs report knocked back hopes for an interest-rate cut; the wider crypto market fell roughly 10% in 24 hours and about 15% over the week.
Zcash's Q4 rally is faltering as an inverse cup-and-handle pattern and Fed-driven risk aversion put ZEC at risk of a roughly 50% drop toward $267; $440 is the critical level traders are watching.