{"id":121596,"date":"2025-12-10T14:07:55","date_gmt":"2025-12-10T10:07:55","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=121596"},"modified":"2025-12-10T14:07:59","modified_gmt":"2025-12-10T10:07:59","slug":"bitcoin-rises-ahead-of-fed-decision-but-gains-capped-by-hawkish-expectations","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/bitcoin-rises-ahead-of-fed-decision-but-gains-capped-by-hawkish-expectations\/12\/10\/market-updates\/","title":{"rendered":"Bitcoin Rises Ahead of Fed Decision, but Gains Capped by Hawkish Expectations"},"content":{"rendered":"\n

<\/h2>\n\n\n\n

Bitcoin traded higher on Wednesday as investors positioned ahead of a widely expected U.S. Federal Reserve interest-rate cut later in the day. However, upside momentum remained constrained by growing expectations that the central bank will pair the cut with hawkish forward guidance<\/strong>.<\/p>\n\n\n\n

By 01:55 ET (06:55 GMT)<\/strong>, Bitcoin was up 1.2% at $92,672.7<\/strong>, after briefly moving above $94,000<\/strong> on Tuesday. The world\u2019s largest cryptocurrency has been largely rangebound this week, stabilizing after one of its steepest monthly declines in years during November\u2019s broad risk-off environment.<\/p>\n\n\n\n

\n\n\n\n

Fed Expected to Deliver a Hawkish Cut<\/strong><\/h3>\n\n\n\n

Markets are pricing in more than an 85% chance<\/strong> of a 25-basis-point rate cut<\/strong> at today\u2019s Fed meeting.<\/p>\n\n\n\n

But traders increasingly expect:<\/p>\n\n\n\n

    \n
  • Powell to warn against aggressive easing<\/strong>,<\/li>\n\n\n\n
  • Emphasis on elevated inflation risks<\/strong>,<\/li>\n\n\n\n
  • Clear divisions among FOMC members<\/strong>,<\/li>\n<\/ul>\n\n\n\n

    \u2014all of which could signal that additional cuts in early 2026 are far from certain.<\/p>\n\n\n\n

    A hawkish tone<\/strong> could:<\/p>\n\n\n\n

      \n
    • Lift the U.S. dollar<\/strong>,<\/li>\n\n\n\n
    • Push Treasury yields<\/strong> higher,<\/li>\n\n\n\n
    • Reduce demand for non-yielding risk assets<\/strong> like Bitcoin,<\/li>\n\n\n\n
    • Cool inflows into crypto-linked ETFs<\/strong>, which had surged earlier this year during the AI-driven investment boom and accelerating institutional adoption.<\/li>\n<\/ul>\n\n\n\n

      With volatility elevated and global markets steadying ahead of the announcement, analysts expect Bitcoin to remain in a tight trading band<\/strong> until the Fed delivers clarity later today.<\/p>\n\n\n\n

      \n\n\n\n

      Regulatory Boost: U.S. Banks Cleared to Broker Crypto<\/strong><\/h3>\n\n\n\n

      Sentiment received a separate lift after the U.S. Office of the Comptroller of the Currency (OCC)<\/strong> said national banks may now act as intermediaries in cryptocurrency transactions.<\/p>\n\n\n\n

      Banks will be allowed to conduct riskless principal trades<\/strong>\u2014buying and immediately reselling digital assets on behalf of clients without holding them on their own books.<\/p>\n\n\n\n

      This marks a significant step toward integrating traditional finance (TradFi)<\/strong> and crypto markets<\/strong>, lowering barriers between regulated banks and digital-asset trading.<\/p>\n\n\n\n

      \n\n\n\n

      Crypto Market Today: Altcoins Outperform<\/strong><\/h3>\n\n\n\n

      Altcoins outpaced Bitcoin\u2019s gains, with broad-based strength across the market:<\/p>\n\n\n\n

        \n
      • Ethereum (ETH)<\/strong> jumped 6.8%<\/strong> to $3,323.92<\/strong><\/li>\n\n\n\n
      • XRP<\/strong> rose 2%<\/strong> to $2.08<\/strong><\/li>\n\n\n\n
      • Solana<\/strong> rallied 5%<\/strong><\/li>\n\n\n\n
      • Cardano<\/strong> surged 9%<\/strong><\/li>\n\n\n\n
      • Polygon<\/strong> climbed 2.5%<\/strong><\/li>\n\n\n\n
      • Dogecoin<\/strong> and $TRUMP<\/strong> each added nearly 4%<\/strong><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

        Bitcoin traded higher on Wednesday as investors positioned ahead of a widely expected U.S. Federal Reserve interest-rate cut later in the day. However, upside momentum remained constrained by growing expectations that the central bank will pair the cut with hawkish forward guidance. By 01:55 ET (06:55 GMT), Bitcoin was up 1.2% at $92,672.7, after briefly …<\/p>\n","protected":false},"author":9,"featured_media":54500,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[40,6827,49,36],"tags":[],"class_list":["post-121596","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-cryptocurrencies","category-daily-economic-reports","category-economic-reports","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/121596","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=121596"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/121596\/revisions"}],"predecessor-version":[{"id":121597,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/121596\/revisions\/121597"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/54500"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=121596"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=121596"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=121596"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}