The total cryptocurrency market value has risen by 3% to $3.2 trillion, continuing a quiet recovery across major digital assets. Bitcoin saw a 2.3% increase in the past day, reaching $92,496, while Ethereum gained 6% to trade at $3,312. Solana also experienced a notable rise, up 3.9% to $138, extending its steady upward trend.
Mid-cap cryptocurrencies have demonstrated more significant price movements. Zcash, for instance, is up 11% to $440, Avalanche has climbed 6.2% to $14, and Monero has increased by 5.4% to $390. This uptick in performance has coincided with a slight improvement in overall market sentiment.
The Crypto Fear & Greed Index has moved out of the "extreme fear" range, increasing from 22 to 26. Liquidations have surged by 106% in the last day, totaling $429 million, suggesting that traders are actively adjusting their leverage positions in anticipation of the upcoming announcement. The open interest has risen by 3% to $133 billion, while the market-wide relative strength index remains close to a neutral level of 51.
Fed Decision to Shape Short-Term Market Movements
The Federal Reserve is scheduled to release its December 2025 interest rate decision at 2:00 p.m. ET (4:00 p.m. UTC). Market participants overwhelmingly anticipate a 25-basis-point rate cut. A key focus for traders will be any indications regarding the policy outlook for 2026.
If the expected 25-basis-point rate cut is accompanied by a dovish dot plot, signaling multiple reductions in 2026, it is likely to lead to an increase in market liquidity. In such a scenario, Bitcoin could potentially retest the $92,000 to $95,000 range, and short liquidation cascades exceeding $120 million could be triggered, contributing to heightened volatility.
Analysts at CryptoQuant have observed that Bitcoin's price movements around rate cuts are often uneven. Following the September rate cut, Bitcoin experienced a four-week high before a subsequent drop of nearly $2,000, with October exhibiting a similar pattern. They caution that a "buy the rumor, sell the news" scenario remains a possibility if the current rate cut meets market expectations precisely.
Key Analyst Short-Term Outlooks
Tom Lee of Fundstrat anticipates a relief rally following the Federal Reserve's decision, projecting a year-end target for Bitcoin between $100,000 and $110,000. CoinDCX Research shares a comparable optimistic outlook, forecasting a 22% upside potential and identifying a base case scenario near $111,000. They also suggest that Bitcoin could reach $130,000–$140,000 if momentum returns to spot ETF inflows.
In contrast, Cathie Wood offers a more cautious perspective. She emphasizes that Bitcoin must maintain support at the $87,000 level to avert a more significant pullback, particularly if the Fed signals fewer rate cuts in 2026 or expresses concerns about ongoing inflation.
CryptoQuant's short-term guidance advises traders to closely monitor leverage metrics, exchange reserves, and ETF flows as primary indicators. They highlight that liquidity conditions remain mixed, and the direction of the market will likely be more influenced by Federal Reserve Chair Jerome Powell's commentary than by the rate cut itself.