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  • 3 minutes read

FOMC Meeting Today: Crypto Markets Brace for Fed Rate Cut and Powell Speech

Story Highlights
  • Fed poised to begin rate cuts, ushering in a new era of monetary easing that could ignite rallies across stocks, crypto, and gold.

  • Bitcoin and Ethereum may surge as lower rates boost liquidity, while markets eye Powell’s signals on the pace of future cuts.

The global financial markets are bracing for a historic shift as the U.S. Federal Reserve is widely expected to begin a new cycle of rate cuts, marking the start of what analysts call a “new era of monetary easing.” The move could ignite a powerful rally across risk assets, with Bitcoin and Ethereum likely to be among the biggest beneficiaries.

FOMC Meeting and FED Rate Cuts 

All eyes are on the Federal Open Market Committee (FOMC) meeting, set to conclude today, with the Fed almost certain to announce a 25-basis-point rate cut, the first in a series expected to extend well into 2026. According to CME Fed Watch data, there is a 99.4% probability of a 25 bps cut, while just 0.6% expect the Fed to hold rates steady.

Fed Chair Jerome Powell will hold a press conference at 2:30 a.m. ET after the meeting. Investors watch to see if the Fed plans to cut rates in the coming months. More rate cuts are expected on December 10 and January 2026, as the Fed begins lowering rates to support the economy during uncertain times.

Impact on the Global Financial Market 

Wall Street veteran Dan Niles believes this cycle could kick off what he describes as a “period of insane wealth creation” across markets. “We’ve seen this playbook before,” Niles said, pointing to the 2021 rate cycle, when inflation surged from 1.4% to 7% and the S&P 500 jumped 27%.

“Everybody’s going to win because you’ve got this easy money,” Niles noted. “Enjoy the party while it lasts.” However, he warned of a 30–50% correction in tech and AI-related stocks by late 2026, predicting that the euphoria could give way to a market “hangover.”

Markets at Record Highs Ahead of Decision

The Dow Jones, S&P 500, and Nasdaq all closed at all-time highs ahead of the Fed’s decision. Traders have already priced in the base-case scenario of a 25 bps cut, while a surprise 50 bps move would send shockwaves through global markets.

A controlled 25 bps cut would reinforce the Fed’s data-dependent approach, while a larger move would signal deeper concern about growth amid a government shutdown that has paused key economic data releases.

If the Fed fails to cut, markets could react sharply — stocks may sell off, bonds could rally, and volatility in the dollar, gold, and crypto would likely spike as investors seek safe havens.

Crypto and Gold Set to Shine

If the rate cut proceeds as expected, liquidity-driven momentum could push Bitcoin and Ethereum higher. Historically, lower interest rates and a softer dollar have favored hard assets and digital stores of value, making crypto a key beneficiary.

“Monetary easing periods tend to fuel speculative assets,” analysts said. “With liquidity returning and yields falling, Bitcoin could reclaim its leadership role as a hedge and growth asset.”

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FAQs

What is the FOMC meeting and why is it important for crypto investors?

The FOMC is the Federal Reserve’s policy-setting committee. Its decisions on interest rates directly influence market liquidity and investor risk appetite, which are major drivers of cryptocurrency prices.

How do Fed rate cuts impact Bitcoin and other cryptocurrencies?

Lower rates reduce yields on savings, making riskier assets like Bitcoin more attractive. They can also weaken the dollar, often pushing investors toward cryptocurrencies as alternative stores of value.

When will the Federal Reserve announce its interest rate decision?

The announcement is expected today, with Fed Chair Jerome Powell’s press conference following at 2:30 PM Eastern Time. This is when official confirmation of any rate change occurs.

What happens if the Fed does not cut rates as expected?

A surprise hold on rates could trigger a sharp sell-off in stocks and crypto, as it signals a less supportive monetary policy. Investors might flock to safe-haven assets, causing market volatility.

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