As expected, the Web3 community had plenty to say about the Fed and rate cuts this week. Read on to learn about the impacts on crypto and the broader markets.
“This rate cut validates our view that restrictive policy is giving way to a slower, more measured recalibration. The Fed’s language is hawkish by design, yet the underlying signals continue to point toward additional easing next year.
“A hawkish cut is a hallmark of a central bank managing transition. It reflects disagreement over timing, not direction. The Fed is easing while attempting to keep financial conditions from loosening too quickly.
“Policy remains restrictive in real terms. If hiring continues to cool and inflation does not reaccelerate, keeping rates at current levels into 2026 would tighten conditions by default.
“The Fed is acting on forward-looking risk. By the time deterioration becomes obvious, the cost of delay rises sharply. Two cuts next year would reflect risk management rather than urgency.
“Monetary policy cannot reverse tariff effects. What it can do is compound the drag on growth if it remains overly tight. That asymmetry increases the likelihood of further adjustments once inflation shows stability rather than acceleration.
“Measured changes spread over time allow credibility to carry across administrations. That makes a series of modest cuts more likely than a prolonged pause.
“Validating part of the adjustment through action reduces the risk of uneven tightening. Two cuts across 2026 would still leave policy disciplined.
“This was not a finishing move. It was a controlled step in a longer process. The Fed’s hawkish cut does not close the door on further easing. It reinforces our expectation that next year brings additional reductions as policy aligns more closely with a slowing labour market and a changing leadership landscape.”
– Nigel Green, CEO, deVere Group
“Today’s FOMC decision wasn’t quite as hawkish as many market participants were expecting, so markets are breathing a sigh of relief. Bitcoin and the S&P 500 are heading higher on the news, encouraged by the Federal Reserve’s plans to buy $40 billion in Treasury bills over the next 30 days. We’ve also seen fewer dissents than expected – only three committee members versus expectations of five.
“However, it is worth noting that the Fed is now expected to cut rates only once next year – fewer cuts than investors were hoping for. This could still change, since next year does bring a historic changing of the guard, but Chair Jerome Powell still remains at the helm for the first three FOMC meetings of 2026.
“This, and the diverging opinions within the committee, inject a fresh dose of uncertainty into the macro outlook. And as any investor knows, markets are allergic to uncertainty. This puts a lid on the rally for risk assets heading into the end of the year.
“Indeed, today’s announcement is not enough to spark a Santa rally for Bitcoin, and I don’t see any other obvious catalysts from here on, barring any unexpected announcements from President Donald Trump. Even then, a dead cat bounce is a real possibility, as risk assets tend to care more about the Fed than just about anything else.
“With further rate cuts now off the table for a while, attention will turn to liquidity and the Fed’s balance sheet policy in early 2026. However, despite the Treasury bill purchase announced today, QE isn’t coming until things start breaking – and that always means more volatility and potential pain.”
– Nic Puckrin, investment analyst and co-founder of The Coin Bureau
“After several days of struggling to secure a daily close above $93,000, Bitcoin finally broke out today, pushing through $94,000 and establishing the higher high needed to reassert short-term bullish momentum, and could point to seller exhaustion.
“Additionally, the Coinbase Premium Index, which measures the price spread between Coinbase and the broader global market, has turned positive again. This suggests renewed U.S. capital inflows and stronger spot-market buying pressure from U.S. investors.
“Despite the bullish price action, liquidity metrics are not yet signalling full confidence. Bitcoin’s bid-ask ratio remains relatively low, indicating that buyers are present but not yet committing size in a meaningful way.
“The 25 bps rate cut is already priced in, everyone seems to be waiting for Jerome Powell’s comments and hoping for a dovish hold / liquidity-friendly tone. Reuters reports that the OCC is explicitly allowing banks to intermediate crypto transactions is a meaningful incremental positive. Even if it doesn’t change flows overnight, it reinforces the ‘rails are opening’ narrative.”
– Shawn Owen, CEO of original Bitcoin-backed lender SALT Lending