The Federal Open Market Committee (FOMC) assembly will probably be held later this week on Dec. 10, 2025. The assembly will resolve whether or not the Federal Reserve rolls out one other rate of interest minimize in December, or not. Based on CME FedWatch, there’s an 87.2% probability that the Federal Reserve will cut back rates of interest by one other 25 foundation factors. Regardless of the excessive possibilities of one other rate of interest minimize, the crypto market is exhibiting no indicators of a rally; as a substitute, costs appear to be consolidating. Let’s focus on why the crypto market isn’t exhibiting any constructive actions.
Why Is The Crypto Market Stagnant, Regardless of Excessive Curiosity Price Reduce Probabilities?
The shortage of any motion within the cryptocurrency market could possibly be on account of macroeconomic uncertainties. Investor sentiment has not absolutely recovered after the market crash in October-November. Based on Different, investor sentiment remains to be within the “excessive concern” area.
Cryptocurrency ETF inflows have additionally slowed down considerably over the previous couple of months. Low ETF inflows may sign a bearish outlook from monetary establishments. Traders could possibly be low ETF inflows as an indication that the worst isn’t but over.
Regardless of the lackluster efficiency over the previous couple of weeks, the cryptocurrency market could construct up steam over the approaching days. If the Federal Reserve cuts charges by one other 25 foundation factors, Bitcoin (BTC) may see a large surge in inflows. Different belongings will possible observe go well with.
Moreover, Grayscale believes Bitcoin (BTC) will climb to a brand new all-time excessive someday subsequent yr, primarily based on its thesis that the unique cryptocurrency follows a 5-year cycle, and never a 4-year cycle. BTC hitting a brand new peak subsequent yr may set off a market-wide bull run.
Nonetheless, there’s additionally a chance that the cryptocurrency market is not going to react to a possible rate of interest minimize. October noticed a 25 foundation level fee discount, however the crypto market didn’t budge.

