BTC, ZEC, AVAX, XMR rally

Crypto prices today are edging higher as traders position for the Federal Reserve’s December interest rate decision and a possible shift in liquidity conditions.

The total cryptocurrency market value rose 3% to $3.2 trillion, extending a quiet recovery across major assets. Bitcoin gained 2.3% in the past day to $92,496, while Ethereum increased 6% to $3,312. Solana rose 3.9% to $138, continuing its steady climb.

Mid-cap names posted larger moves, with Zcash up 11% to $440, Avalanche up 6.2% to $14, and Monero up 5.4% to $390. There was also a slight improvement in sentiment.

The Crypto Fear & Greed Index left the “extreme fear” range, moving from 22 to 26. Liquidations totaled $429 million, rising 106% in the last day, indicating that traders are adjusting their leverage before the announcement. Open interest rose 3% to $133 billion, while the market-wide relative strength index stayed near a neutral 51.

Fed decision sets the tone for short-term moves

The Fed will release its December 2025 rate decision at 2:00 p.m. ET (4:00 p.m. UTC). The markets almost certainly anticipate a 25-basis-point cut. Traders are keeping an eye out for any changes to the policy outlook for 2026. 

If a confirmed 25-basis-point rate cut is paired with a dovish dot plot that predicts multiple reductions in 2026, market liquidity would likely increase. In this scenario, Bitcoin could rise to between $92,000 and $95,000 and short liquidation cascades worth more than $120 million could occur, triggering more volatility.

CryptoQuant analysts note that Bitcoin often sees uneven moves around rate cuts. After September’s cut, Bitcoin reached a four-week high before dropping nearly $2,000, and October showed a similar pattern. They warn that a “buy the rumor, sell the news” move is still possible if today’s cut matches expectations.

Key analyst short-term outlooks

Tom Lee of Fundstrat expects a relief rally after the decision, setting a target of $100,000–$110,000 by year-end. CoinDCX Research shares a similar view, projecting 22% upside and pointing to a base case near $111,000, while leaving room for a move toward $130,000–$140,000 if momentum returns to spot ETF inflows.

Cathie Wood takes a more cautious stance. She notes that Bitcoin needs to hold the $87,000 area to avoid a deeper pullback if the Fed signals fewer cuts in 2026 or shows concern about inflation.

CryptoQuant’s short-term guidance points traders toward leverage metrics, exchange reserves, and ETF flows as the main indicators to watch. They note that liquidity is still mixed, and the next move will depend more on Powell’s tone than the cut itself.