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BTCC / BTCC Square / Global Cryptocurrency /
Santa Rally Meets Fed Uncertainty in Fragile Crypto Markets

Santa Rally Meets Fed Uncertainty in Fragile Crypto Markets

Author:
Global Cryptocurrency
Published:
2025-12-26 17:36:02
25
2
BTCCSquare news:

U.S. equities are finishing the year with confidence, pulling crypto markets into their gravitational field. The familiar 'Santa Claus rally' has lifted Bitcoin and ethereum alongside tech stocks, but the cheer rests on shaky foundations. Federal Reserve uncertainty looms large as traders price in premature rate cuts.

Seasonal tailwinds are blowing through digital assets. BTC (+5% weekly) and SOL (+12%) lead the charge, with altcoins like DOGE and SHIB showing uncharacteristic discipline. Exchange volumes suggest renewed risk appetite—Binance and Coinbase spot trading pairs reflect 30% weekly inflows.

Yet beneath the surface, derivatives tell a different story. Bybit and Bitget open interest reveals excessive leverage in meme coins. 'This isn't organic demand,' warns a Galaxy Digital trader. 'It's degenerate gambling anticipating a Fed pivot.'

The Fed's shadow stretches across crypto corridors. When Powell pushed back on March rate cut expectations yesterday, BTC instantly shed $1,000. Real yields now dictate crypto valuations more than halvings or airdrops.

Smart money is hedging. Ethereum's options skew shows institutions buying puts at twice the usual premium. 'We're playing the range until Q1,' says a Fidelity crypto strategist, noting ETH's $2,100-$2,400 channel.

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Risk warning: Digital asset trading is an emerging industry with bright prospects, but it also comes with huge risks as it is a new market. The risk is especially high in leveraged trading since leverage magnifies profits and amplifies risks at the same time. Please make sure you have a thorough understanding of the industry, the leveraged trading models, and the rules of trading before opening a position. Additionally, we strongly recommend that you identify your risk tolerance and only accept the risks you are willing to take. All trading involves risks, so you must be cautious when entering the market.

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