Fed Policy Uncertainty Does Not Rattle Bitcoin Market

Bitcoin has remained resilient amid the Federal Reserve’s anticipated rate cuts in December 2025, demonstrating stability despite recent volatility and leveraged market liquidations.

The market anticipates a Fed rate cut, potentially catalyzing a Bitcoin rally towards $100,000, underscored by institutional inflows and positive on-chain metrics.

Bitcoin Faces 32% Correction Amid Fed Uncertainty

Bitcoin’s price faced a 32% correction in late 2025 due to Fed policy uncertainty and leveraged liquidations. Key Fed figures, including Jerome Powell, influence these fluctuations. Chair Powell and potential successor Kevin Hassett, with his dovish tilt, are crucial in shaping expectations. Fed officials have signaled potential rate cuts in December 2025, with the anticipation that these will influence Bitcoin’s market dynamics.

Institutional Confidence Upholds Bitcoin Stability

Bitcoin remains relatively stable despite market volatility and leveraging concerns, suggesting institutional trust. Investor and industry leader Kevin O’Leary has publicly stated, “December Fed cut unlikely, but Bitcoin will be fine,” underscoring Bitcoin’s resilience despite central bank uncertainty. Institutional investors continue inflows, highlighting confidence in Bitcoin as a macro hedge against economic uncertainties.

Potential Rate Cuts Could Propel Bitcoin to $100,000

Historically, Bitcoin often reacts sharply to Fed rate changes; tightening leads to downturns, while easing stimulates growth. The FOMC Calendar – Federal Reserve outlines the upcoming meetings where such decisions could be made, adding to market speculation. Experts like O’Leary believe Bitcoin can recover toward $100,000 if the Fed cuts rates. These potential policy shifts and dovish anticipations buoy market optimism for Bitcoin’s recovery.