## Fed is about to decide on interest rates - Will BTC surge or crash?

Bitcoin price reached $94,625 last weekend, the highest in three weeks, sparking a trading frenzy with expectations of "continued growth." However, just a few hours later, the price dropped to $92,400, creating market uncertainty. Currently, BTC is trading around $92.21K according to the latest data.

This movement reflects a common market phenomenon: **FOMO is what?** FOMO (Fear Of Missing Out - the fear of missing out on opportunities) is the psychology of participating in the market when seeing sharp price increases, fearing to miss profits. Data from Santiment shows that social media has recently been flooded with messages calling for "going higher," but these signals do not always align with actual market actions. Many analyses indicate that retail traders often act contrary to the main trend.

## Fed Meeting on 12/18 - A Turning Point for Bitcoin

The U.S. Federal Reserve will announce its interest rate decision on Wednesday, a key event likely to shape Bitcoin's price direction. According to CME Group futures data, the market currently prices in an 88.6% probability of a 0.25% rate cut.

However, not everyone is optimistic. Professional traders warn that Bitcoin may be rallying based on expectations of Fed easing monetary policy. BTSE exchange manager commented: "It's very hard to say what will happen after the Fed speech, as the market has already priced these expectations very high."

Additionally, the probability of another 0.25 percentage point cut in January is only 21.6%. This means that if the Fed appears "hesitant" or reluctant to continue easing, Bitcoin could face selling pressure.

## Unusual signs - Or price manipulation?

Long-time Bitcoin investor "NoLimit" shared a controversial opinion that the rally to $94,000 was "completely unnatural." He pointed out that:

- The order book is very thin, making it easy to push the price up
- Large buy orders are executed within minutes
- Then there is no follow-through, just an immediate halt

This suggests a familiar scenario: big players create FOMO, inflate the price to have a better opportunity to sell off. Since reaching $94,625, BTC has dropped about 2.4% within 24 hours.

The market is currently in a waiting state, with volatility potentially spiking before the important Fed meeting. Any signs of hesitation regarding further rate cuts or additional economic stimulus could be negative signals for Bitcoin and the entire cryptocurrency market.