Will the Fed’s Rate Decision Affect Crypto Markets This Week?

Over the past weekend, cryptocurrency markets remained stable, except for a minor spike in leveraged manipulation on Sunday evening.

In the near term, volatility may increase, with a quarter-point rate cut at the Federal Open Market Committee meeting on Tuesday and Wednesday likely already priced in.

Additionally, job openings reports for September and October will be released on Tuesday, and initial jobless claims data will follow on Thursday. These provide a clear view of the U.S. labor market — one of the Federal Reserve’s key focus areas when making monetary policy decisions.

The U.S. central bank will announce its monetary policy decision on Wednesday and is expected to cut interest rates by a quarter percentage point to 3.5–3.75%. According to the CME Fed Watch Tool, the probability of this scenario currently stands at 88.4%.

The Fed will also publish its quarterly “Summary of Economic Projections,” which may offer insights into how many rate cuts are expected next year. Markets are currently pricing in a federal funds rate of around 3% by December 2026 — representing “a much more aggressive easing cycle than the central bank is currently projecting.”

With inflation declining and growth relatively stable, market sentiment remains positive heading into year-end. However, uncertainty around tariffs, consumer demand, and Fed policy may limit investor appetite.

After falling below $88,000 during Sunday trading, bitcoin rebounded twice to the $91,500 level in the hours that followed. It is currently fluctuating near $91,600, facing strong resistance above this zone.

Ethereum mirrored this behavior, briefly dipping below $3,000 but then recovering to around $3,100.

See also: "Strategy Buys Another 10,624 Bitcoins"

#Fed #Bitcoin (BTC)

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