Crypto Market Hits $3.2T Ahead of Fed Decision, Bitcoin Near $92K
Things are looking more hopeful in the global cryptocurrency markets as we approach the Federal Reserve's December 2025 interest rate...
Quick overview
- The global cryptocurrency market capitalization has increased by 3% to $3.2 trillion, indicating a cautious recovery.
- Major cryptocurrencies like Bitcoin and Ethereum have shown positive gains, with Bitcoin at $92,496 and Ethereum at $3,312.
- Investor sentiment is improving as the Crypto Fear & Greed Index rises from 22 to 26, moving out of the 'extreme fear' zone.
- Analysts have mixed predictions for Bitcoin's future price, with some expecting a rally while others caution about potential pullbacks.
Things are looking more hopeful in the global cryptocurrency markets as we approach the Federal Reserve’s December 2025 interest rate announcement. The total market capitalization has gained 3%, reaching $3.2 trillion – and that’s a clear sign that major assets are starting to make a cautious recovery.
- Bitcoin (BTC), currently at $92,496, is up 2.3%.
- Ethereum (ETH) – $3,312 – has gained 6%.
- Solana (SOL) – up 3.9% at $138
Some mid-cap coins are taking the biggest leaps, including Zcash, which has leapt by 11% to $440, Avalanche, which has risen 6.2% to $14, and Monero, which is up 5.4% to $390. It looks like we’re seeing a slight improvement in investor sentiment – the Crypto Fear & Greed Index has risen from 22 to 26, which has just moved out of the “extreme fear” zone.
Traders are scrambling to adjust their leverage ahead of the Fed announcement, leading to a 106% surge in liquidations to $429 million. Meanwhile, open interest has increased by 3% to $133 billion, and the market-wide Relative Strength Index (RSI) is steady at 51, suggesting a neutral stance.
Fed Decision Awaits – Will It Shake Up Markets?
The Fed’s rate decision is scheduled for 2:00 p.m. ET (4:00 p.m. UTC), and most expect a 25-basis-point cut. What’s being watched closely is the policy guidance that accompanies it, as it could significantly impact liquidity conditions in 2026.
If the Fed signals that there will be multiple rate reductions next year, Bitcoin could rise to between $92,000 and $95,000, and that could trigger a pretty big short-liquidation cascade of $120 million. Looking back at previous Fed cuts, we can see that they’ve triggered volatile but short-lived rallies. We’re already seeing those classic “buy the rumor, sell the news” dynamics play out after the September and October moves, according to CryptoQuant.
Analyst Views Are Mixed
The crypto analysts are about as divided as could be:
- Tom Lee (Fundstrat) says a relief rally is possible, with prices hitting $100K-$110 by the end of the year.
- CoinDCX Research is basing its predictions on a possible price range of $111K-$130 if ETF inflows are bigger.
- Cathie Wood is watching the $87K support level closely – and warning that if we don’t see more rate cuts, we could be looking at a deeper pullback.
CryptoQuant reckons that the next market move will depend much more on what Fed Chair Powell says than on the actual rate cut itself. It’s a reminder of just how sensitive crypto liquidity is to macro signals.
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