Bitcoin Briefly Pops Following Fed Rate Cut, Optimistic 2026 Outlook

As expected, the FOMC lowered the federal funds rate by 25bps to 350-375. 

However, while some watchers feared a market downturn due to what could have been a “bearish cut,” the market tilted upwards due to the Fed’s optimistic economic projections for 2026.

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Bitcoin Briefly Pops Following Fed Rate Cut, Optimistic 2026 Outlook

The FOMC lowered the federal funds rate by 25 basis points, navigating tensions between still-elevated inflation and growing concern over employment.

The Fed cut rates as expected and Chairman Powell was hopeful about the economy in 2026.

Markets feared a "bearish cut" with negative commentary. Instead, Powell delivered what one strategist calls a "Goldilocks cut," optimistic on 2026 growth at 2.3% and reduced inflation risks.

But the real surprise: Fed will start buying $40B in T-bills monthly starting Dec 12, injecting liquidity into the system.

The full story reveals:

• Why "not raising is the new cut" according to market reaction

• What the Fed's $40B monthly T-bill purchases mean for Bitcoin (and why it's not QE)

• Where Grayscale expects bitcoin's bottom is and when new highs could hit

• Who's favored to replace Powell in 2026 and what that means for crypto

This is the kind of deep investigation that flags hidden risks and regulatory shifts before they affect your portfolio, helping you spot opportunities others miss.