Bitcoin Holds Steady as Fed Decision Becomes the Week’s Decider

Bitcoin traded in a narrow band on Tuesday, stuck at $90,000 as crypto markets paused across the board while investors waited for the Federal Reserve’s final policy update of the year.

With virtually all major assets moving sideways, analysts say Chair Jerome Powell’s tone – not the rate cut itself – is likely to decide the market’s next real trend.

Over the past several days, Bitcoin has hovered between $88,000 and $93,000 as liquidity thins into year-end. Ethereum held close to $3,100, BNB traded near $886, and Solana drifted around $132. The total crypto market cap has slipped toward $3.1 trillion during the wait-and-see lull.

ETF Flows Show Traders Rotating Into Altcoins

Despite the calm price action, exchange-traded funds revealed a more nuanced picture. Bitcoin products shed roughly $60 million in outflows on Monday, while ETH, SOL, and XRP funds drew a combined $74 million in inflows.

Markets Go Flat Ahead of a “Binary” Fed Week

Analysts widely described the mood as a market waiting for permission to move. Traders have largely sidelined themselves ahead of Wednesday’s FOMC announcement, where a December rate cut is considered the base case.

Some analysts said the cut is already fully priced in. Powell’s guidance, she argued, will matter far more – especially his comments on whether 2026 policy may stay tighter or shift toward a more accommodative stance.

In their view, Bitcoin is likely to stay locked in the $91,000 region immediately after the announcement unless Powell surprises markets.

Liquidity Drains as Derivatives Traders Step Back

QCP Capital observed that extreme weekend swings – BTC snapping from $88K to $92K and ETH from $2,910 to $3,150 – highlight how shallow liquidity has become as the year ends.

Open interest has collapsed:

• Bitcoin OI is down over 44% since October
• Ethereum OI has dropped more than 50%

Retail participation has thinned dramatically as well, with Google search interest sliding back to bear-market lows.

Yet long-term buyers continue to quietly absorb supply. Roughly 25,000 BTC has left centralized exchanges in the past two weeks, and ETF + corporate holdings have now surpassed exchange balances – reinforcing the ongoing structural supply squeeze. Still, without a macro catalyst, this steady absorption has not been enough to break the range.

Powell’s Speech Expected to Determine Bitcoin’s Next Move

Analysts generally agree that tomorrow’s guidance will set the market’s tone heading into the final weeks of 2025.
A cautious or hawkish message could nudge Bitcoin back toward the $88,000 zone.

A supportive outlook – or hints of more cuts in early 2026 – could spark a move toward $93,000-$95,000, with a shot at $97,000 – $106,000 if momentum returns. Until then, the dominant strategy remains to wait.

The market now sits in stasis – its next move hanging entirely on Powell’s words.