Crypto's Rollercoaster Ride: Fed's Moves and Market Moods in Early 2026

In late 2025, the Federal Reserve made three interest rate cuts, hoping to cool inflation and boost jobs. But crypto markets didn't cheer. Instead, Bitcoin (BTC), Ether (ETH), and other cryptocurrencies dropped, losing over $1. 45 trillion in value from their October highs. This unexpected reaction raises questions about what's next for crypto in early 2026. The Fed's recent rate cuts might not continue. Fed officials, like John Williams, warn that inflation is still a concern. They want to see prices drop to 2% without hurting jobs. This careful approach makes crypto's future uncertain. Some experts think BTC could fall to $70, 000 and ETH to $2, 400 if the Fed pauses rate cuts.But there's a twist. The Fed has started buying short-term Treasury bills to stabilize the banking system. This move, called "stealth QE, " could quietly pump money into markets. During the 2020-2021 QE, crypto markets boomed. If this continues, BTC might rise to $92, 000-$98, 000, and ETH could hit $3, 600. However, this is not guaranteed. The recent U. S. government shutdown messed up inflation data, making it hard to predict market trends. This uncertainty might explain why crypto didn't rally with the rate cuts. Crypto markets are sensitive to liquidity, not just interest rates. If the Fed keeps injecting money, crypto could stay stable or even grow. Investors should be cautious. Crypto markets are volatile, and predictions are uncertain. While "stealth QE" might support prices, it's not a guarantee. Market moods, global events, and Fed policies all play a role. It's a complex dance, and only time will tell how it ends.