From Fed Cuts to BOJ Hikes: Navigating Uncertainty in Digital Assets

Spotlight:

Bitcoin is on track for a weekly gain, yet it has struggled to generate sustained momentum even after the Federal Reserve delivered its third rate cut of the year. Following the central bank’s decision to lower interest rates by 25 basis points last Wednesday, the world’s largest digital asset has not registered a clear upward breakout, continuing to oscillate within the tight $88,000 to $93,000 band that has defined much of its December performance. While the Fed’s tone remains generally supportive of risk assets, the signal of a more cautious approach to further easing in 2026 stopped short of the dovish shift many traders had hoped for, resulting in subdued price action compared to previous easing cycles.