Crypto Asset Market Has a Busy Week Ahead

8.12.25.01
From the perspective of the crypto asset market, the coming days are set to be unusually active — and potentially decisive. The most closely watched moment arrives on Wednesday, December 10, when the Federal Open Market Committee (the monetary policy arm of the US central bank) announces its interest rate decision. A potential rate cut could send crypto prices soaring — or, in the opposite scenario, weigh heavily on sentiment.

Key December events may sway the market

This second week of December brings several developments that could influence the crypto asset market for the remainder of the year. At the center of attention is the FOMC meeting, where the body responsible for US monetary policy will determine whether interest rates move lower or stay elevated.

Interest rate decisions matter: lower rates typically encourage investment in various asset classes, including crypto assets, as looser policy signals expected economic stimulus. Rising demand tends to lift asset prices. Conversely, a rate hike usually dampens investor appetite.

Economists expect a rate cut

Polls conducted by leading economic outlets suggest that most analysts anticipate a rate reduction on Wednesday. Reuters reported that a majority of the 100 surveyed economists expect a quarter-percentage-point cut — which would mark the third consecutive move of this size.

The FOMC will also release its summary of economic projections. This outlook could shape market expectations in the weeks ahead. The US economy remains relatively strong, showing more than 3% annualized growth in Q2, while inflation is still somewhat elevated at around 3%.

Labour market concerns

The one notable concern is unemployment. In September, it rose to 4.4%, slightly higher than in previous months. This trend is widely seen as a key reason why experts expect the Fed to cut rates: easing policy may help support job creation and prevent further increases in unemployment.

Fresh labour market data arrives just before the decision. On Tuesday, the Bureau of Labor Statistics will publish the Job Openings and Labor Turnover Survey. On Wednesday, the Employment Cost Index follows. Both may serve as the final inputs for FOMC members ahead of the vote.

A divided Fed

According to Investopedia, the 12 voting members of the committee remain split between those who prioritise lowering rates to stimulate spending and stabilize the weakening labour market, and those who argue rates should remain high to combat inflation still above the 2% target.

Fed officials entered their customary pre-meeting blackout last week, halting public commentary. Before that, however, sentiment seemed to tilt toward a rate cut.

Sources:

https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm

https://www.federalreserve.gov/newsevents/pressreleases/monetary20251029a.htm

https://www.bls.gov/schedule/2025/12_sched.htm

https://www.reuters.com/business/economists-double-down-december-fed-cut-despite-policymaker-divide-2025-12-04/

https://www.investopedia.com/what-to-expect-from-next-weeks-december-fed-meeting-11862791

https://think.ing.com/articles/three-in-a-row-from-the-fed-but-more-cautious-moves-expected-for-2026/

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