The Federal Open Market Committee (FOMC) meeting will be held later this week on December 10, 2025. The meeting will decide whether the Federal Reserve will cut rates further in December. According to CME FedWatch, there is an 87.2% chance that the Fed will cut rates by another 25 basis points. Despite the high possibility of further interest rate cuts, the cryptocurrency market shows no signs of rising. Instead, prices appear to be stabilizing. Let’s think about why the cryptocurrency market does not show positive movements.
Why is the crypto market stagnant despite the high probability of interest rate cuts?
The lack of movement in the cryptocurrency market may be due to macroeconomic uncertainty. Investor sentiment has not fully recovered after the October-November market crash. Investor sentiment remains in the realm of “extreme fear”, Alternative said.
Inflows into crypto ETFs have also slowed significantly in recent months. Low ETF inflows may indicate a bearish outlook for financial institutions. Investors may be viewing low ETF inflows as a sign that the worst is not yet over.
After lackluster performance over the past few weeks, the crypto market could gain momentum in the coming days. If the Fed cuts rates by another 25 basis points, inflows into Bitcoin (BTC) could spike significantly. Other assets are likely to follow suit.
Furthermore, Grayscale believes Bitcoin (BTC) will reach an all-time high sometime next year, based on the theory that the original cryptocurrency follows a five-year cycle instead of a four-year cycle. BTC could reach new highs next year, triggering a market-wide bull run.
However, it is also possible that the crypto market will not react to a potential rate cut. In October, interest rates were cut by 25 basis points, but the cryptocurrency market did not move.