Crypto markets are turning green ahead of one of the most closely watched events of the year — the Federal Reserve’s December rate decision. Major assets, from Bitcoin to mid-cap altcoins, are climbing as traders position themselves for what could be a significant shift in liquidity conditions.
The total market cap added 3% over the last 24 hours, reaching $3.2 trillion. Bitcoin led the move with a 2.3% gain, trading at $92,496 at the time of writing. Ethereum outperformed with a strong 6% jump to $3,312, while Solana continued its steady uptrend, climbing 3.9% to $138.
Notably, mid-caps delivered the biggest upside. Zcash surged 11% to $440, Avalanche gained 6.2% to hit $14, and Monero advanced 5.4% to $390. Sentiment also showed signs of recovery, with the Crypto Fear & Greed Index rising from 22 to 26 — still cautious, but no longer signaling “extreme fear.”
Meanwhile, liquidations spiked sharply to $429 million, more than doubling within a day. This suggests traders are aggressively rebalancing leverage ahead of the Fed announcement. Open interest rose 3% to $133 billion, while the market-wide RSI hovered near a neutral 51, reflecting balanced positioning.
All Eyes on the Fed
The Federal Reserve will reveal its much-anticipated December 2025 interest rate decision at 2:00 p.m. ET (4:00 p.m. UTC). Markets are almost unanimous in pricing in a 25-basis-point rate cut, but traders are more focused on the dot plot and how policymakers view the path forward into 2026.
A confirmed cut paired with a notably dovish outlook — especially multiple projected cuts next year — could inject fresh liquidity into risk assets. Analysts suggest such a scenario may push Bitcoin toward the $92,000–$95,000 range in the very short term and potentially trigger over $120 million in short liquidations.
CryptoQuant analysts warn that Bitcoin has a history of choppy movement around rate decisions. After the September cut, BTC hit a monthly high before sliding nearly $2,000. October followed the same pattern. The firm suggests traders should remain alert to a classic “buy the rumor, sell the news” reaction if today’s outcome simply matches expectations.
Analysts Split on the Next Move
Fundstrat’s Tom Lee expects a positive market reaction, projecting Bitcoin to reach between $100,000 and $110,000 by year-end. CoinDCX Research has a similarly bullish outlook, seeing a possible 22% upside with a baseline target of $111,000. If ETF inflows regain momentum, they see room for BTC to push toward $130,000–$140,000.
ARK Invest’s Cathie Wood is more cautious. She highlights $87,000 as a critical support level — a zone Bitcoin must hold if the Fed takes a less dovish stance or hints at inflation concerns.
CryptoQuant’s short-term roadmap advises traders to watch leverage ratios, exchange reserves, and ETF flow trends closely. The firm notes that market liquidity remains mixed and that Powell’s tone may end up dictating the next major move more than the cut itself.
As the crypto market prepares for the Fed’s announcement, volatility looks almost guaranteed — it’s only a question of which direction it will break.
Also Read: Solana Targets $140 as Market Signals Hint at a Fresh Cycle
