Bitcoin has entered a rare liquidity window as three major global catalysts line up within days of each other.
The Federal Reserve announces its rate decision today, the Bank of Japan meets next week, and regulatory momentum is building in Washington.
These events arrive as cryptocurrency is trading around $92,000 after a 35% correction from its all-time high earlier this year.
The confluence of monetary policy decisions and regulatory developments could set the stage for cryptocurrency's 2026 cycle, according to market analysts tracking institutional flows and on-chain metrics.
What Happened
The Federal Reserve's policy committee concludes its two-day meeting on December 10, with an 88% probability of a 25 basis point rate cut priced into futures markets.
This would mark the third consecutive reduction, lowering the federal funds rate to a range of 3.5%-3.75%.
Fed Chair **Jerome Powell'**s press conference at 2:30 p.m. EST will provide forward guidance that could move markets, particularly given thin order books and compressed volatility across risk assets.
One week later, the Bank of Japan meets December 18-19 to decide whether to raise rates from 0.5% to 0.75%.
Governor Kazuo Ueda signaled the central bank is weighing "the pros and cons" of a rate hike, with markets pricing in a 76% probability of an increase.
A rate hike would mark a significant policy shift for Japan after years of negative rates, potentially tightening global liquidity conditions as capital flows back into yen-denominated assets.
On the regulatory front, Argentina's central bank is considering allowing banks to offer cryptocurrency services as early as April 2026, reversing a three-year ban.
The move reflects growing institutional acceptance in Latin America's most active crypto market.
BlackRock filed an S-1 registration statement with the SEC on December 6 for the iShares Staked Ethereum Trust ETF.
The product would offer exposure to Ethereum's price plus staking rewards, pending regulatory approval.
MicroStrategy, now rebranded as Strategy, purchased 10,624 BTC for $962.7 million between December 1-7, bringing its total holdings to 660,624 BTC.
Read also: Analyst Predicts XRP Will Reach $10 Within Year as ETFs Absorb 506M Tokens
Executive Chairman Michael Saylor met with sovereign wealth funds and banks in the Middle East during the same period.
Why It Matters
The Federal Reserve's decision carries immediate weight because it signals whether the central bank will continue easing into 2026.
Chair Powell acknowledged in October that economic growth has slowed to 1.6% this year from 2.4% in 2024, complicated by a government shutdown that disrupted key data releases.
The Summary of Economic Projections released alongside the rate decision will reveal where policymakers expect rates to end 2026.
A hawkish tone could pressure risk assets including cryptocurrency, while dovish guidance might support further gains.
The Bank of Japan's potential rate hike represents a different kind of pressure.
After ending a decade of negative rates in January 2025, a December increase would accelerate the unwinding of one of the world's largest monetary stimulus programs.
Higher Japanese rates typically strengthen the yen and raise U.S. Treasury yields, tightening global liquidity conditions that have supported cryptocurrency markets since 2020.
Broader monetary trends show M2 money supply reached $22.3 trillion in October 2025, up 4.5% year-over-year.
The expansion marks the fastest growth rate since July 2022, though still below the long-term average of 6.3% recorded between 2000 and 2025.
Institutional positioning suggests major players are moving ahead of regulatory clarity.
Argentina processed $91 billion in cryptocurrency transaction volume between July 2023 and June 2024, making it Latin America's most active market, with over 60% involving stablecoins used to hedge peso devaluation.
The selloff from Bitcoin's all-time high has already pushed long-term holders to reduce their supply to levels not seen since March.
With that selling pressure behind the market and institutional buyers stepping in, the next phase depends on how central banks and regulators shape the environment for digital assets heading into 2026.
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