Federal Reserve Split on Rate Cut Decision, Crypto Markets React

The Federal Reserve’s November meeting minutes reveal internal disagreements among officials, with several opposing a rate cut, indicating a cautious approach to monetary policy decisions.

This division signals potential impacts on economic stabilization strategies, affecting market dynamics as stakeholders adjust expectations amidst US monetary policy uncertainties.

Federal Reserve’s Rate Division Spurs Crypto Market Volatility

The Federal Reserve’s minutes indicate that there is a split regarding interest rate cuts, with significant figures like Jerome Powell and Christopher Waller diverging on policy direction. Powell highlighted ongoing economic uncertainties, suggesting that maintaining current rates might be prudent. In contrast, Waller advocated for a cut, pointing to labor market concerns.

This internal division led to financial market uncertainty, especially within crypto sectors where assets like Bitcoin and Ethereum are sensitive to U.S. policy signals. The sector saw $1.36 billion in liquidations as traders repositioned amid mounting speculation.

“With official data still limited, it is safer to provide policy insurance early to prevent a rapid deterioration in employment.” — Christopher Waller, Governor, Federal Reserve.

Cryptocurrency Liquidations Surge Amid Market Speculation

Did you know? Federal Reserve policy shifts typically influence Bitcoin volatility, showcasing its vulnerability to macroeconomic factors, similar to previous U.S. policy-induced jitters in 2025.

As of recently, Bitcoin (BTC) is trading at $89,145.37 with a market cap of $1.78 trillion, as per CoinMarketCap data. Its market dominance stands at 58.63%. Over 24 hours, BTC’s volume dipped 33.05% to $71.38 billion, aligning with a 3.81% price drop. Such trends reflect traders’ concerns amid potential rate changes and market distress.

The Coincu research team outlines that future rate decisions could redefine crypto sector dynamics. They emphasize the need to monitor emerging regulatory policies and technological advancements. Historical data indicates that rate shifts frequently trigger significant crypto market movement, potentially setting the tone for future financial adjustments.