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Solana News Update: Crypto Markets Rally and Volatility Rises Following Fed's Dovish Shift Ahead of December Decision

Solana News Update: Crypto Markets Rally and Volatility Rises Following Fed's Dovish Shift Ahead of December Decision

Bitget-RWA2025/11/27 00:00
By:Bitget-RWA

- JPMorgan predicts a 25-basis-point Fed rate cut in December 2025, aligning with 79% market probability via CME FedWatch. - Dovish policy sparks crypto surge: Bitcoin hit $107,000 as lower rates reduce holding costs for non-yielding assets. - Trump-aligned economist Kevin Hassett's potential Fed chair nomination could boost crypto-friendly regulatory approaches. - Market sectors react diversely: tech stocks and fintech gain from cheaper capital, while traditional banks face margin compression. - December

JPMorgan Chase & Co. has strengthened its projection that the Federal Reserve will lower interest rates in December 2025, pointing to a more dovish policy approach and weakening economic data. The bank’s outlook is in step with increasing market confidence, with

of a 25-basis-point cut as of November 26. If realized, this would mark the third rate decrease of the year, following moves in September and October, and to balance easing inflation with a cooling job market.

The shift toward looser monetary policy has already triggered a "risk-on" sentiment, with digital assets rallying as investors expect greater liquidity.

(BTC) briefly climbed above $107,000 earlier this month, while . to the negative correlation between interest rates and speculative assets, as lower rates make holding non-yielding cryptocurrencies more attractive. , described the possible nomination of Kevin Hassett—a Trump-affiliated economist known for supporting aggressive rate cuts—as "highly bullish" for the crypto sector.

Solana News Update: Crypto Markets Rally and Volatility Rises Following Fed's Dovish Shift Ahead of December Decision image 0

Hassett, who currently leads the White House National Economic Council, is a top contender to succeed Fed Chair Jerome Powell,

. with have made him a pro-crypto candidate who could shape digital asset regulation. However, have sparked debate about the central bank’s autonomy, especially after his unsuccessful bid to oust Governor Lisa Cook earlier this year.

Markets have broadly responded to the prospect of rate cuts.

as traders anticipated a Fed policy shift, while yields on U.S. Treasuries fell, leading to a steeper yield curve. , reaching its lowest level in a week, and gold prices rose as investors sought protection against inflation and currency depreciation. In the crypto space, that holds more than 2 million SOL, secured $23 million in a private sale to strengthen its reserves amid turbulent price movements.

JPMorgan’s report identifies which sectors could benefit or suffer from a rate reduction.

as net interest margins decline, while technology and fintech companies focused on growth could gain from easier access to capital. , including trading platforms like Coinbase and mining firms such as Riot Platforms, is also positioned to profit as trading activity and asset prices increase. protocols might encounter profitability challenges in a low-yield setting.

Looking forward, the Fed’s meeting on December 9–10 will be pivotal. Although a 25-basis-point cut is widely anticipated,

or holding rates steady—could spark significant market swings. that short-term pullbacks are still possible, with Bitcoin’s price exposed to unfilled CME gaps and ongoing selling by short-term investors. Nevertheless, , as the Fed’s end to quantitative tightening and the possibility of a "soft landing" point to a broader move toward more accommodative policy.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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