Fed’s Make-or-Break Policy Decision Sparks Market Frenzy – What’s Next for Crypto?

The Federal Reserve’s looming policy crossroads has traders on edge, with Bitcoin and altcoins poised for volatility.

Will Powell pivot or double down? Either way, crypto markets are braced for impact.

Meanwhile, institutional whales keep accumulating – because nothing says 'hedge against monetary incompetence' like decentralized assets.

The conclusion of the government shutdown was already anticipated on Sunday and Monday, thus the budget law signed by Trump today did not impact the charts. cryptocurrency markets are not faring well amidst ongoing uncertainties and concerns related to tariffs and an impending court ruling. While this article was being prepared, Fed member Daly was offering statements providing crucial insights into the economy.

Fed Announcements

With 27 days remaining until the December meeting, it remains unclear which data points the Fed will consider in making its decision. Hopes for the complete release of October’s figures have dwindled, and November’s numbers will be announced throughout December. Therefore, the Fed may once again have to make a decision without full data, a situation Powell previously indicated could cause them to keep rates steady.

Although the phase of monetary expansion is underway, confidence in consistent rate cuts is weak due to lingering inflation concerns, which remain above the 2% target. All these factors contribute to a diminished appetite in risk markets. BTC has fallen back below $102,500, and the 350DMA no longer serves as a reliable support.

Key highlights from Fed member Daly’s comments include the following:

Insights From Fed Member Daly

“The Fed should be willing to change its approach to the balance sheet. Communication about the balance sheet is crucial.

There has been a notable decrease in uncertainty within the U.S. economy. The U.S. economy is in a state of cautious optimism. There is still much to be done to reduce inflation to 2%. The labor market has significantly slowed down. Inflation is decreasing, excluding tariffs.

It is still too early to definitively state whether there will be a rate cut in December.

Waiting until we have as much information as possible before making decisions on interest rates is vital.”