Fed’s December Drama: Will Crypto Survive the Rate Cut Rollercoaster? 🚀💸

by

Well, slap my wallet and call me broke-Bitcoin has plummeted to its lowest point in six months, and the timing couldn’t be more awkward. It’s like showing up to a party just as the punch runs out. 🥊🍹

Why the sudden nosedive? Investors are losing faith faster than a politician at a fact-checking convention that the Federal Reserve will slash interest rates at their next meeting. And this is sending both stocks and crypto markets into a tailspin. Talk about a mood killer. 😩📉

Now, everyone’s gearing up for a week of economic data dumps, now that the government has finally reopened after a 43-day shutdown. Because nothing says “productivity” like a month-long nap. 😴🗓️

Fed Rate Cut Odds: From Hero to Zero

Remember when the Fed cut rates by 25 basis points last meeting? Good times. Big brains like J.P. Morgan predicted two more cuts in 2025 and one in 2026. But now, the odds of a December cut have shrunk faster than a cheap sweater in hot water. According to the CME Fedwatch tool, it’s down to a measly 45%. Ouch. 🤕📊

BREAKING

MARKET EXPECTATIONS FOR A DECEMBER FED RATE CUT JUST DROPPED TO 44.4%.

– DustyBC Crypto (@TheDustyBC) November 15, 2025

Fed Officials: Inflation’s Still the Grinch Stealing Christmas

More Fed bigwigs are sounding the alarm that inflation is still higher than a giraffe on stilts. Kansas City Fed President Jeff Schmid, for one, thinks keeping rates steady might be the way to go. He’s also convinced that the job market’s issues are long-term, thanks to technology and immigration. “Rate cuts won’t fix this,” he says, probably while sipping a very serious cup of tea. 🫖🤓

“Rate cuts could have longer-lasting effects on inflation as our commitment to our 2% objective increasingly comes into question. This was my rationale for dissenting against the last cut, and it’s still my jam heading into December,” he added, channeling his inner economist-poet. 📜💡

Dallas Fed President Lorie Logan is also on Team No-Cut, saying she needs “convincing evidence” of inflation cooling faster than a popsicle in Antarctica before she’ll budge. These folks are more divided than a family at Thanksgiving. 🦃🔥

Fed Meets Banks: Liquidity’s Drying Up Faster Than a British Summer

Meanwhile, New York Fed President John Williams had a little chat with Wall Street banks about the standing repo facility (SRF). Why? Because market liquidity is tighter than a pair of skinny jeans after Thanksgiving dinner. Williams wanted to remind everyone that the SRF is there to turn Treasuries into cash when things get sticky. But guess what? It’s been sitting there like a forgotten houseplant until recently. 🌱💸

Fed officials are scratching their heads over why firms are borrowing at higher rates instead of using the SRF. It’s like choosing a root canal over a free massage. 🤷♂️🦷

Fed Shake-Up: Musical Chairs Edition

Looking ahead, the Fed might get a makeover next year. Atlanta Fed President Raphael Bostic is stepping down, giving President Trump another chance to play puppet master. And with Powell’s term ending in May, plus a Supreme Court ruling that could boot Fed Governor Lisa Cook, it’s like a reality show but with more spreadsheets. 📊🎭

Oh, and several regional Fed presidents are rotating onto the committee next year, many of whom are hawkish enough to make a bald eagle jealous. 🦅💼

For now, it’s a waiting game. Will the Fed cut or hold in December? Investors are watching with the intensity of a cat staring at a laser pointer. 🐱🔴

Crypto’s Fate: Hanging by a Thread (or a Blockchain)

Rate cuts are usually crypto’s best friend, bringing more liquidity and risk appetite. But if the Fed stands pat, it could trigger a sell-off sharper than a guillotine in stocks and crypto. And let’s face it, the markets are already as fragile as a porcelain unicorn. 🦄💔

Read More

2025-11-15 14:55