Crypto.news revealed in its analysis that cryptocurrency prices are seeing a significant rise today as traders position themselves ahead of the Federal Reserve's decision on interest rates and the potential shift in liquidity conditions.
The total market capitalization of cryptocurrencies increased by 3% to $3.2 trillion, extending a quiet recovery across major assets, with the price of Bitcoin $BTC rising by 2.3% over the past 24 hours to $92,496, while Ethereum $ETH jumped by 6% to $3,312, and sentiment improved slightly as the Fear and Greed Index moved out of the "extreme fear" range from 22 to 26.
The U.S. Federal Reserve's decision sets the tone for short-term movements.
According to the site, the Federal Reserve is set to announce its decision on interest rates for December 2025 at 2:00 PM Eastern Time (4:00 PM UTC).
Markets are almost certainly expecting a 25 basis point cut, and traders are watching for any changes in the political outlook for 2026. If the confirmed rate cut is paired with a dovish "dot plot" predicting multiple cuts in 2026, market liquidity is likely to increase.
In this scenario, the price of Bitcoin (BTC) could rise to between $92,000 and $95,000, and short position liquidations exceeding $120 million may occur, leading to further volatility.
Divergent analyst forecasts and potential scenarios.
Tom Lee from Fundstrat expects a relief rally after the decision, setting a target of $100,000–110,000 by year-end. CoinDCX Research shares a similar view, anticipating a 22% increase while noting a fundamental case near $111,000.
While Cathie Wood takes a more cautious stance, indicating that Bitcoin needs to hold the $87,000 area to avoid a deeper decline if the Fed signals fewer cuts in 2026 or shows concern about inflation, CryptoQuant analysts warn that the "buy the rumor, sell the news" movement remains possible if today’s cut aligns with expectations.
Key indicators for monitoring and traders' preparations.
The short-term guidance from CryptoQuant directs traders towards leverage indicators, exchange reserves, and ETF fund flows as key monitoring indicators. Analysts note that liquidity remains mixed, and the next move will depend more on the tone of Federal Reserve Chair Jerome Powell than on the rate cut decision itself.
Mandatory liquidations totaled $429 million, up 106% over the past day, indicating that traders are adjusting their leverage ahead of the announcement, while open positions rose by 3% to $133 billion.
