What's Next for Crypto? Fed Meeting, Inflation Data to Shape Markets

Crypto Market Braces for Pivotal Week Amid Fed Meeting and Inflation Data

Key Fed Meeting on Wednesday

The cryptocurrency market anticipates a significant week, as investors eagerly await the Federal Reserve's policy decision on Wednesday. Despite speculation, the CME Group's FedWatch tool indicates a high probability (over 99%) that the Fed will maintain interest rates. The Fed此前曾预计2025年仅进行两次降息。

Inflation Data Release

Alongside the Fed meeting, the release of key inflation data will be closely monitored. The Consumer Price Index (CPI), a crucial measure of inflation, provides valuable insights into consumer purchasing power. Investors will also look to the release of the personal consumption expenditures price index for December, the Fed's preferred inflation gauge, on Friday for indications of the U.S. economy's health.

Crypto Market Dip

Bitcoin experienced a decline below $99,000 on Monday, attributed to profit-taking ahead of the Fed meeting. The cryptocurrency mirrored declines in U.S. stock futures, which were influenced by concerns about China-based DeepSeek's capabilities relative to OpenAI.

At the time of writing, Bitcoin had fallen 5.65% over the past 24 hours to $98,812. Leading losses, Solana's SOL and Dogecoin (DOGE) saw declines exceeding 12%, while Ethereum (ETH), BNB, XRP, and Cardano's ADA lost up to 11%. Tokens outside the top 20, across various sectors, also suffered significant losses ranging from 12% to 18%.

According to CoinGlass data, the downward movement resulted in $860 million in liquidations, representing a 585% increase. Bullish bets on rising cryptocurrency prices lost $794 million, contributing to a negative start to the week.