FOMC Impact: Crypto Braces for Fed Decision
The cryptocurrency market exhibited moderate fluctuations on Tuesday, ahead of the release of the Federal Open Market Committee (FOMC) meeting minutes. With expectations for further clues regarding the Federal Reserve's (Fed) policy direction for 2026, many crypto traders remained cautious in the face of heightened market volatility.
Major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) remained stable despite uncertainty surrounding the Fed's interest rate decision. Most traders focused on the potential for interest rate cuts, which are expected to impact market liquidity and provide a positive boost for non-yielding cryptocurrencies. If the Fed decides to continue lowering interest rates, it could increase interest in assets like crypto as an alternative investment.
On the other hand, Ethereum showed slight gains toward the end of 2025, driven by announcements about network upgrade protocols and more developers switching to the Ethereum blockchain platform. In contrast, several other altcoins experienced price corrections after experiencing significant gains throughout the year.
With continued geopolitical tensions and global economic uncertainty, many crypto investors are seeking refuge in these assets, making them a safe haven during periods of heightened economic uncertainty. The FOMC decision in the coming days could determine the short-term direction of the cryptocurrency market, particularly regarding looser or tighter liquidity policies.
Source: Newsmaker.id
