The Federal Reserve cut interest rates three times in 2025, but officials are divided on the rate path for 2026, with projections ranging from no cuts to two cuts next year. This divergence creates uncertainty for Bitcoin and the crypto market, as investors grapple with mixed signals amid key economic variables like inflation and labor market conditions. While current cautious Fed stance dampens crypto recovery momentum, medium- to long-term hopes remain for lower rates and leadership change to support risk assets.

