The world’s largest cryptocurrency has reclaimed key price levels, but traders remain on edge as a divided Federal Reserve prepares to deliver its final verdict of the year later today.
Bitcoin shot past $94,000 on Tuesday before pulling back a bit, and now crypto markets are holding their breath waiting for the US Federal Reserve’s interest rate decision later today (December 10). Everyone expects a rate cut, but there’s growing anxiety that Chairman Jerome Powell might deliver what traders call a “hawkish” message: cutting rates now but hinting at a long pause through 2026 because inflation isn’t going away.
The cryptocurrency climbed over 4% on Tuesday, hitting an intraday peak of $94,608. That’s a nice bounce back from earlier this month when it dropped below $85,000. The rally got fuel from fresh institutional buying and news that Vanguard, the world’s second-largest asset manager, will finally let people trade crypto ETFs on its platform.
But the optimism is fragile. The Federal Open Market Committee wraps up its two-day meeting this afternoon, and markets are putting an 87% chance on a 25 basis point cut. Here’s the thing though: investors aren’t worried about the cut itself. They’re worried about what comes after. US labor data looks strong and inflation is still above target, so analysts are warning the Fed might signal this is the last rate cut for a long time.
Making things more complicated, Standard Chartered just slashed its 2025 Bitcoin price forecast. The bank used to predict it would hit $200,000. Now they’re saying $100,000, pointing to slower ETF inflows and less buzz around companies adding Bitcoin to their balance sheets.
“Bitcoin bulls have regained control… but liquidity signs are not yet robust enough to fully back this momentum,” analysts at Mitrade noted, warning the rally might not have legs if the Fed sounds too cautious.
“The market is pricing in a cut, but the risk is a ‘hawkish cut’ where they lower rates but explicitly take future easing off the table,” a crypto strategist from CoinSwitch Markets said. “That could trigger a sharp ‘sell-the-news’ event for risk assets.”
Bitcoin is still down about 26% from its record high of over $126,000 back in October 2025. It’s been struggling to find direction in the fourth quarter, caught between excitement about a supposedly pro-crypto US administration and the reality of high interest rates that won’t quit.
The broader crypto market has been just as volatile. Ethereum reclaimed the $3,350 level, while Solana and XRP posted modest gains. It looks like traders are hedging their bets ahead of the Fed’s 2 p.m. EST announcement.
All eyes are on Jerome Powell’s press conference later today. If he sounds dovish and hints at more cuts in early 2026, analysts think Bitcoin could quickly push toward that psychological $100,000 mark. But if he signals the easing cycle is “one-and-done,” prices could tumble back toward the $80,000 support zone. It’s basically all riding on what Powell says and how he says it.
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