The Federal Reserve is set to announce its interest rate decision on December 10, causing anticipation in the crypto markets. Bitcoin is trading between $91,000 to $93,000 in a bullish technical formation, with Jerome Powell's press conference potentially impacting the price.
The Federal Open Market Committee (FOMC) concludes its two-day meeting this December 10th with a highly anticipated announcement on U.S. monetary policy. For crypto traders, this major macroeconomic event represents a significant volatility catalyst. The Fed’s official statement will be released at 2:00 PM EST, immediately followed by a press conference from Chairman Jerome Powell. Markets widely anticipate a 25 basis point rate cut, bringing the target range to 3.50-3.75%, but it’s Powell’s tone and the economic projections that will determine how risk assets like Bitcoin react.
The notion of a “hawkish rate cut” dominates pre-announcement discussions. In short, even if the Fed lowers rates, it could simultaneously signal a pause in the monetary easing cycle for 2025. The famous “dot plot” showing FOMC members’ rate projections will be scrutinized closely to detect any changes in expected rate trajectory. Dissenting votes within the committee are likely, reflecting internal divisions over the speed of monetary normalization in the face of still-persistent inflation.
The Bitcoin price recently printed new local highs, consolidating the $91,000 to $93,000 zone as solid technical support. This resilience demonstrates a persistent risk appetite despite macroeconomic uncertainty. Buyers clearly remain in control, and liquidity is gradually improving on the order books of major trading platforms.
Current technical analysis favors a bullish continuation scenario, with a major psychological target at $100,000. The critical level to watch sits around $91,500: as long as this support holds, the directional bias remains upward. However, FOMC days are historically prone to false signals and whipsaw movements. It’s not uncommon to see price perform a liquidity sweep in both directions before the real trend asserts itself.
Three main scenarios emerge for the crypto market reaction. In the case of a rate cut without excessively hawkish rhetoric, Bitcoin could quickly test the $96,000-$98,000 resistance, opening the path toward six figures. This “dovish surprise” scenario would likely trigger a broad rally across altcoins, particularly on assets highly correlated with liquidity conditions like Ethereum.
Conversely, if Powell takes a harder tone by indicating that future rate cuts are unlikely in 2025, BTC could suffer a rapid correction toward the $88,000-$89,000 zone. This move would nonetheless remain compatible with the overall bullish structure, resembling a healthy consolidation rather than a trend reversal. The third scenario, that of hesitant and unconvincing price action (choppy price action), could extend the ranging phase between $90,000 and $94,000 for several days.
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Gaston has been a writer for over 7 years and a passionate cryptocurrency enthusiast since 2020. He loves exploring the crypto ecosystem and is now dedicated to sharing his insights and discoveries through InvestX.
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