Traders are eagerly awaiting the Federal Reserve's upcoming interest rate decision, with Bitcoin (BTC) surging above 94K last night and Ethereum (ETH) reclaiming $3,300, driving an overall rise in crypto market capitalization. Over the past 24 hours, short positions have been liquidated for more than $300 million.

Market Eagerly Awaits Fed Rate Decision

Traders are eagerly awaiting the Federal Reserve's upcoming interest rate decision, the last one of the year, which will be announced at 3 a.m. Beijing time on December 11, followed by Chair Powell's post-meeting press conference. The market expects the Fed to cut rates by another 25 basis points. According to the CME FedWatch Tool, the probability of a rate cut is about 87%, higher than the 67% a month ago. The dot plot and economic projections to be released this time, as well as Chair Powell's remarks, will significantly influence market trends.

Influenced by market expectations of a rate cut, the Russell 2000 small-cap index rose, hitting an intraday all-time high. Rate cuts may be more beneficial for small businesses, as their borrowing costs are more closely tied to market rates than those of large companies, and lower rates could help economic growth benefit more industries.

Bitcoin Surges to 94K, Short Liquidations Surge

Bitcoin surged above 94K last night, with Ethereum reclaiming $3,300, driving an overall rise in crypto market capitalization. Over the past 24 hours, short positions have been liquidated for more than $300 million.

The U.S. Office of the Comptroller of the Currency (OCC) issued Interpretive Letter No. 1188, confirming that qualifying national banks can participate in risk-free principal transactions in crypto asset trading. "Such transactions refer to banks executing hedging cryptocurrency trades between two clients in their own name, without holding any crypto assets themselves, acting solely as intermediaries."

Meanwhile, the Abu Dhabi Global Market (ADGM) has approved Tether's USDT as an "Accepted Fiat-Referenced Token (AFRT)," allowing local institutions to legally operate USDT custody, trading, and settlement services.

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