Bitcoin, Ether, Solana, and Cardano Dip as Market Awaits Expected Fed Rate Cut

Bitcoin Tests $94K Before Pullback Ahead of Fed Decision

Bitcoin briefly climbed above $94,000 on Tuesday before retreating to around $92,500 in Wednesday’s Asian session, reigniting bullish sentiment but leaving the market exposed ahead of the Federal Reserve’s closely watched policy announcement.

Asian equities traded mixed as investors awaited clarity on the Fed’s next steps and Chair Jerome Powell’s final press conference of 2025.

Altcoin Movements
Altcoins showed a mixed picture. Ether rose 7% over 24 hours to $3,320, extending its weekly gain to nearly 10%. Solana added over 5%, Dogecoin advanced 5%, and Cardano outperformed with an 8.5% daily gain and nearly 6% for the week. Most tokens eased 1–2% in Asian morning trading as traders booked profits. XRP added 2% over 24 hours but remains down 4% for the week, while BNB, USDC, and TRX held flat. Market liquidity in smaller tokens remained thin, reflecting December’s uneven trading conditions.

Volatility and Sentiment
Bitcoin’s rebound was initially fueled by rising social sentiment and retail optimism, according to Santiment. However, BTC fell back under $93,000, prompting debate over whether the move was a meaningful breakout or a stop-hunt within the $86,000–$94,000 range. CF Benchmarks analyst Mark Pilipczuk noted that realized volatility spiking above implied volatility—a first in months—can signal market exhaustion, often preceding a bottom. Bitget CEO Gracy Chen added that Bitcoin’s consolidation shows the market lacks the stability to drive a decisive move.

Global Market Context
Chinese stocks fell after November inflation data tempered expectations for easing, while Japanese equities dipped slightly. South Korea and Taiwan posted modest gains. Silver hit a record high, and the dollar steadied, reflecting uncertainty over global central bank policy into 2026.

Outlook
Bitcoin’s next move depends on whether it can reclaim the $94,000–$96,000 range after Powell’s remarks or if macro caution pushes it back toward the mid-$80,000s.

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