Federal Reserve December Rate Cut Odds Decline

Key Points:
  • Federal Reserve Chair Jerome Powell’s cautious stance impacts December rate cut odds.
  • CME FedWatch data shows a probability range for a rate cut between 47.4% and 52%.
  • Cryptocurrency markets experience muted gains amidst rate decision uncertainty.

The probability of a Federal Reserve rate cut in December has fallen to 47.4%, as shown by CME’s FedWatch data, influencing financial and cryptocurrency markets.

Investors adjusted strategies amid lower rate cut expectations, impacting assets like Bitcoin and Ethereum, ahead of the Federal Open Market Committee’s December meeting.

Cryptocurrency Markets React to Fed’s Rate Decision Uncertainty

The probability for a December 2025 rate cut by the U.S. Federal Reserve has decreased to a range of 47.4% to 52%, based on CME’s FedWatch tool. Federal Reserve Chairman Jerome Powell emphasized a cautious approach due to limited official data, supported by recent comments during his latest press meeting. As Jerome Powell stated, “some participants might see the lack of official data as a reason not to cut in December.”

Investor sentiment is shifting, as probability changes lead to a widespread reevaluation across asset classes. The adjustment is lowering trades in futures related to Fed funds. This is particularly noticeable in the cryptocurrency sector, where Bitcoin and Ethereum have experienced muted gains.

Market Data and Expert Insights

Did you know? When the Fed last held rates with divided committee opinions, cryptocurrency markets saw increased stability, diverging from typical trends of higher volatility during rate adjustments.

Bitcoin (BTC) currently trades at $100,696.78 with a market cap of $2.01 trillion, commanding a 59.32% share of the crypto market. Over the last 24 hours, trading volume reached $78.93 billion with a -0.90% price change. Data provided by CoinMarketCap as of November 13, 2025.

bitcoin-daily-chart-4335
Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 17:07 UTC on November 13, 2025. Source: CoinMarketCap

The Coincu research team suggests the reduced likelihood of a rate cut could dampen crypto market exuberance, given historical trends where interest rate expectations have driven volatility. This could lead to more measured investment behavior until the Federal Reserve makes its December announcement.

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