Fed’s 2026 Policy Outlook and $2B Liquidation Risk Drive Bitcoin Volatility

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Risk-on assets faced renewed pressure as the Fed’s 2026 policy outlook dominated market sentiment ahead of the Dec. 10 FOMC meeting. Powell’s guidance on the easing path, rather than the expected rate cut, is seen as the key driver for macro-driven volatility in Bitcoin. Market data revealed two major short-liquidation zones just above current BTC prices, which could trigger sharp swings if breached. Analysts stress that Bitcoin reacts more to Fed tone shifts than to already priced-in rate moves.
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