A reduction in the Federal Reserve's key rate will not be sufficient to stimulate immediate growth in the cryptocurrency market. The cautious position of the regulator will delay the update of Bitcoin's ATH at least until spring, analysts warned in a conversation with The Block.
The head of the Federal Reserve, Jerome Powell, characterized the rate as being in 'neutral territory', but emphasized the dependence of future decisions on incoming data. A split has emerged in the committee: the decision was made by a vote of nine to three, which set a record for the number of dissenters since 2018.
Paul Howard from Wincent noted that the scale of the decline and mixed signals from the committee are 'not enough for new highs on this side of Easter.' Coin Bureau co-founder Nick Pakrin emphasized that the situation adds uncertainty and cancels hopes for the traditional 'Santa Claus rally.'
At the same time, the Fed announced the purchase of treasury bills worth $40 billion to maintain liquidity. Matt Howells-Barbee, head of growth at Kraken, believes this could support the crypto market in early 2026. However, he warned of the risks of policy tightening due to the rotation of voting members of the Federal Reserve.
Charlie Bilello, senior market strategist at Creative Planning, pointed to the paradoxical nature of the current cycle.
His words confirm the data on cash flows. Spot bitcoin ETFs attracted $224 million in net investments.
Timothy Misir, head of research at BRN, characterized the situation as a 'hawkish reduction.' According to him, institutions continue to buy the dips: since December 1, large wallets have accumulated over 42,500 BTC. Pressure on the price is primarily due to retail sales.
Let us remind you that Saad Ahmed, head of the Asia-Pacific division of the Gemini exchange, stated that the cryptocurrency market lacks the volatility needed to launch a full-fledged altcoin season.
