Daily Market Update: Stock and Crypto Markets Pause as Federal Reserve Decision Looms

TLDR

• Bitcoin briefly touched $94,000 before falling back to $92,500 as traders await the Federal Reserve’s final policy decision of 2025
• Markets are pricing in a 90% chance of a third consecutive quarter-point rate cut from the Fed
• Ether rose 7% to $3,320 while Cardano jumped 8.5%, though both pulled back 1-2% in Asian trading
• Stock futures held near flat with the Dow, S&P 500, and Nasdaq showing minimal movement ahead of the Fed announcement
• Fed Chair Jerome Powell’s press conference at 2 p.m. ET Wednesday will provide key insights on future monetary policy

Bitcoin experienced a volatile trading session on Tuesday. The cryptocurrency briefly climbed above $94,000 before retreating to $92,500 in Asian morning hours Wednesday.

The pullback comes as investors await the Federal Reserve’s final policy decision of 2025. Markets are pricing in a nearly 90% chance of a third consecutive quarter-point rate cut.

US stock futures showed minimal movement ahead of the announcement. Dow Jones Industrial Average futures, S&P 500 contracts, and Nasdaq 100 futures all held just above the flatline.

Tuesday’s stock trading session offered little momentum. The Dow led losses, dragged down by weakness in JPMorgan.

The Nasdaq Composite posted a small gain. Tesla and Alphabet provided support for the index.

Altcoin Performance Shows Mixed Results

Ethereum gained 7% over 24 hours to trade around $3,320. The token extended its weekly gain to nearly 10%.

Cardano outperformed other major cryptocurrencies with an 8.5% jump on the day. Solana added over 5% while dogecoin advanced 5%.

All tokens pulled back 1-2% in Asian morning hours. Traders likely took profits following the overnight gains.

XRP added 2% over 24 hours but remains down 4% for the week. BNB, USDC, and TRX traded flat.

Market depth in smaller tokens remained thin. This pattern has characterized December trading so far.

Fed Decision Takes Center Stage

The Federal Reserve will announce its policy decision at 2 p.m. ET Wednesday. Fed Chair Jerome Powell will hold a press conference following the announcement.

FOMC members remain split on the decision. Some officials argue easier policy is needed to support a cooling labor market.

Other members warn further easing could risk reigniting inflation. The post-meeting statement will provide clues on the committee’s thinking.

Technical Analysis Points to Range-Bound Trading

Bitcoin has been consolidating in a broad $86,000 to $94,000 range. Bitget CEO Gracy Chen stated the market doesn’t have enough anchors to make a decisive move.

CF Benchmarks research analyst Mark Pilipczuk noted bitcoin posted a classic volatility spike. Realized volatility rose above implied volatility for the first time in months.

This crossover has occurred eight times historically. In six cases, it aligned with bitcoin bottoming and the start of a recovery.

Bitcoin slipped back under $93,000 in late Asian trading. Analysts debate whether the move was technically meaningful or another stop-hunt inside the broader range.

Social sentiment surged following bitcoin’s brief rally above $94,000. Blockchain analytics firm Santiment noted traders showed renewed optimism and expected higher prices.

The sentiment cooled quickly as prices retreated. The cryptocurrency remained exposed ahead of the Fed decision.

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