The Federal Reserve’s interest rate cuts in 2025 did not boost crypto markets. Bitcoin, Ether, and major altcoins dropped over $1.45 trillion in total market capitalization. Fed officials, including John Williams, expressed cautiousness about further rate cuts due to inflation concerns. Uncertainty over inflation data could keep crypto prices low in Q1 2026.

The Fed’s shift to Reserve Management Purchases (RMPs) in December 2025 may stabilize crypto prices. RMPs inject liquidity and support risk appetite, potentially raising Bitcoin to $92,000-$98,000 and Ethereum to $3,600. This “stealth QE” strategy could help crypto markets without aggressive rate cuts, benefiting from ETF inflows and institutional accumulation.

Read more at Cointelegraph: Fed Q1 2026 Outlook and Its Potential Impact on Crypto Markets