Fed cancels December rate cut, 18% chance of hike, slowing Bitcoin rally
The Fed cut rates but signaled no guaranteed December cut, increasing market uncertainty and impacting Bitcoin's rally.Summary
The Federal Reserve implemented a 25 basis point rate cut, setting the target range to 3.75% to 4.00%. However, following the FOMC meeting, Chairman Powell emphasized that a December cut is "not a foregone conclusion," leading futures markets to remove the expectation of another cut. CME FedWatch data now shows a base case for a hold in December, with an approximately 18.5% probability remaining for a 25 basis point hike in January 2026, reflecting persistent inflation concerns. This shift implies a "higher for longer" interest rate environment, which tightens liquidity for crypto markets, supports the dollar, and keeps real yields firm. Consequently, Bitcoin's rally is slowing as the market faces stickier macro sensitivity, favoring rotations toward higher-quality, cash-flowing crypto assets over high-beta altcoins when uncertainty rises.
(Source：CryptoSlate)