Wall Street Titan’s Bitcoin Awakening: ’Regrets Mounting as Opportunity Window Narrows’

Another financial heavyweight admits what crypto natives knew years ago - digital gold isn't just for tech bros anymore.

The Latecomer's Lament

Traditional finance's slow dance with Bitcoin continues as another Wall Street titan breaks ranks. Their public awakening echoes through marble corridors where denial once reigned supreme.

Price tags don't lie - that psychological $110K barrier keeps traders guessing while the Fed plays musical chairs with rate cuts. Meanwhile, Asian markets wake up to another volatile session.

Funny how these epiphanies always arrive after the easy money's been made - Wall Street's version of showing up when the buffet's down to celery sticks.

Market snapshot

• Bitcoin: $110,622, down 1.7%
• Ether: $3,930, down 1.7%
• XRP: $2.58, down 1.3%
• Total crypto market cap: $3.83 trillion, down 1.1%

Fed Delivers 25bp Cut as Powell Warns Data Gaps Could Skew Policy Path

The Fed cut its benchmark rate by 25 basis points to a range of 3.75% to 4%, its first MOVE in months, but Powell urged restraint on expecting another reduction this year. He said policymakers are reassessing risks to the labor market and will remain cautious, especially as the government shutdown limits access to economic data.

“The cut was priced in — that was very clear to me,” said Maja Vujinovic, CEO and co-founder of Digital Assets at FG Nexus. “A lot of people in my crypto chats were expecting a little bit of a bump, but the market keeps selling off. Powell’s stance came across as less dovish, and traders were hoping for a signal of more aggressive or frequent future cuts.”

The central bank’s statement acknowledged the data blackout caused by the shutdown, warning it could complicate future decisions if job and inflation reports remain unavailable. Markets quickly pared bets on further easing, pushing two-year Treasury yields up 11 basis points and giving the dollar a lift.

Powell and the Fed cut US interest rates as expected Wednesday. But did the crowd "buy the rumor, and sell the news"? Our below insight explores what this result means for crypto, and what we can learn from the many rate cut price fakeouts in 2025.https://t.co/8CfsBVHds4 pic.twitter.com/teUHcIFOnZ

Fed Cut Fails to Ignite Rally as Powell Strikes a Guarded Note

In Asia, investors will watch for the Bank of Japan’s policy decision on Thursday, where rates are widely expected to stay unchanged at 0.5%. The meeting will be the first under Prime Minister Sanae Takaichi, who is viewed as supportive of continued monetary easing.

Meanwhile, diplomatic focus shifts to South Korea, where US President Donald TRUMP and China’s Xi Jinping are expected to meet later today. The two leaders are preparing to finalize a limited reconciliation that could pause new tariffs and restart trade in key commodities such as soybeans.

Fed’s December QT Wind-Down Seen as a Key Catalyst for Broader Risk Assets

Macro uncertainty is still high, Vujinovic said. “Many investors are taking profits at these resistance levels and reducing exposure until there’s more clarity from both the Fed and the broader global economy,” she said.

Greg Magadini, director of derivatives at Amberdata, said the policy shift could still favor crypto once liquidity conditions ease.

“We’re still in the early stages of a cutting cycle and easing liquidity will help push prices higher and bring volatility back down for BTC,” he said.

He added that the end of the Fed’s quantitative tightening (QT) plan in December should support broader risk sentiment. “FOMC coming in as expected helps reinforce the lower volatility environment,” Magadini said. “As long as liquidity remains easy, we expect crypto to rally into year-end.”

For now, though, uncertainty dominates the market. Traders are adjusting to a Fed that just turned slightly more cautious, a government that’s partially shut down, and a data void that leaves markets guessing what comes next.