Fed Rate Cut Speculation Affects Markets

On November 21, 2025, speculation around a potential Federal Reserve rate cut by December rose following unofficial remarks by Fed’s John Williams, affecting US Treasury yields and spot gold prices.

This uncertainty influences crypto assets like Bitcoin and Ethereum, as traders adjust strategies based on Federal Reserve signals and macroeconomic outlook.

Financial markets have responded with increased volatility.

According to Arthur Hayes, Former CEO of BitMEX, “Watching Fed expectation whipsaw is a masterclass in market psychology. Don’t position size on wishful thinking—wait for the dot plot.” Speculation suggests shifts in liquidity conditions, with cryptocurrencies like Bitcoin and Ethereum potentially affected. Market experts remain divided on the likelihood of imminent rate cuts, referencing official perspectives shared in Federal Reserve minutes. Such market reactions highlight the importance of interpreted contextual clues surrounding official announcements.

Bitcoin (BTC) holds a current price of $84,959.75, facing a 24-hour decline of 2.39%. Its market cap stands at CoinMarketCap, with a 24-hour trading volume reaching 132,630,495,254, marking a 38.90% increase. Over the past 90 days, Bitcoin’s price has decreased by 26.15%, according to CoinMarketCap.

Coincu’s research team suggests that any concrete rate cuts could trigger renewed growth in cryptocurrency markets. Historical patterns align decreased rates with positive flows in Bitcoin and Ethereum. Markets may also see increased liquidity in DeFi protocols if liquidity forecasts shift, reflecting broader macroeconomic impacts on crypto assets.

Cryptocurrency Markets on Alert Amid Potential Rate Cuts

Did you know? Speculative rate cuts often lead to increased volatility in commodities and cryptocurrencies, reflecting broader market uncertainty and anticipation.

Bitcoin (BTC) holds a current price of $84,959.75, facing a 24-hour decline of 2.39%. Its market cap stands at CoinMarketCap, with a 24-hour trading volume reaching 132,630,495,254, marking a 38.90% increase. Over the past 90 days, Bitcoin’s price has decreased by 26.15%, according to CoinMarketCap.

Coincu’s research team suggests that any concrete rate cuts could trigger renewed growth in cryptocurrency markets. Historical patterns align decreased rates with positive flows in Bitcoin and Ethereum. Markets may also see increased liquidity in DeFi protocols if liquidity forecasts shift, reflecting broader macroeconomic impacts on crypto assets.