Federal Reserve’s December Rate Cut Decision Anticipated

A Reuters survey on November 12th reveals that 84 out of 105 economists expect the Federal Reserve to cut interest rates by 25 basis points in December.

The anticipated Federal Reserve rate cut could significantly impact crypto markets, potentially boosting investments in Bitcoin, Ethereum, and DeFi protocols as liquidity conditions ease.

Federal Reserve’s Rate Cut and Crypto Market Implications

Amid broad anticipation, the Federal Reserve is expected to cut rates by 25 basis points. Three quarters of surveyed economists support this move. Chair Jerome Powell’s caution highlights economic data uncertainty, yet some members cite the necessity of a cut to maintain economic stability.

If enacted, this rate cut could inspire bullish sentiment in crypto markets. Lower rates often encourage flow of funds into alternative assets, possibly providing a boost to digital assets like Bitcoin and Ethereum.

“Most participants saw a December cut as the baseline… Labor market data are ‘unlikely to send a convincingly reassuring message’ by the time of the FOMC meeting in December.” — David Mericle, Chief US Economist, Goldman Sachs Research

Bitcoin, Historical Trends, and Regulatory Outlook

Did you know? In past Fed rate cut cycles, such as 2019 and March 2020, asset rallies were observed, including sharp increases in Bitcoin’s value. These instances demonstrated increased investor attraction towards crypto assets during dovish monetary phases.

Bitcoin (BTC), as of November 12, 2025, holds a market cap of $2,094,739,979,186.00 and a price of $105,011.46. Representing a 59.37% market share, BTC experienced a 10.44% rise in the last 24 hours. The maximum supply is capped at 21,000,000, with a current circulation of 19,947,728, as reported by CoinMarketCap.

Coincu’s research team suggests a potential rate cut may enhance discussion on tighter crypto regulations linked to conventional finance. Federal rate adjustments often precede moves in macro financial regulations, reflecting in dominant crypto properties potentially enduring intensified scrutiny to balance financial risks.