US stocks closed lower on Monday as markets turned cautious ahead of the Federal Reserve’s final FOMC meeting of 2025, which begins Tuesday. Cryptocurrencies posted modest gains after a weak weekend, with Bitcoin (BTC) remaining firmly above $90,000 and Ethereum (ETH) trading at $3,107 at press time.

Fed Expected to Cut 25 bps This Week, But Future Pace Likely to Slow

The US 10-year Treasury yield climbed to its highest level since September. While markets assign an 87% probability to a 25 bps rate cut on Wednesday, traders increasingly warn that the pace of subsequent easing will slow.

Kevin Hassett, a leading candidate to become Fed Chair, said it would be irresponsible for the Federal Reserve to pre-announce its rate path for the next six months at this stage. In a CNBC interview on Monday, the Director of the White House National Economic Council stressed the importance of remaining data-dependent.

Persistent inflation concerns have created clear divisions among Fed officials, divisions made wider by the absence of new data during the government shutdown. Markets now expect only two additional rate cuts by the end of 2026 — down from three a week ago.

Individual Stock Moves

President Trump approved Nvidia’s export of H200 AI chips to China in exchange for a 25% revenue share from those sales.

Paramount Global launched a hostile takeover bid for Warner Bros. Discovery amid growing antitrust concerns over a potential Netflix deal.

Morgan Stanley downgraded Tesla from Overweight to Neutral, sending the stock down more than 3%.

Bitcoin Holds Firm Above $90,000

Cryptocurrencies rebounded modestly after a sluggish weekend, with Bitcoin staying above $90,000 and Ethereum last quoted at $3,107.

Supported by favorable regulatory developments and renewed institutional inflows, the broader crypto market rose 1.73% over the past 24 hours. The CFTC officially approved Bitcoin, Ethereum, and USDC as collateral in regulated derivatives markets, following the framework established by the GENIUS Act and providing clear guidance for licensed firms.

According to CoinShares, global crypto ETPs recorded net inflows of $716 million last week as bearish sentiment eased. The United States led with $483 million, followed by Germany ($96.9 million) and Canada ($80.7 million). Short-Bitcoin products saw outflows of $18.7 million — the largest single-day exodus since March.

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