Fed’s divided rate decision threatens Bitcoin’s comeback as December hike looms

Thu, 29 Oct 2026 · price · Sentiment: neutral

The Federal Reserve’s latest meeting revealed significant internal divisions over the pace of monetary tightening, with several officials signaling resistance to further rate hikes even as markets price in a likely December increase. This policy uncertainty has introduced fresh headwinds for Bitcoin’s ongoing recovery by reinforcing expectations of prolonged higher interest rates that typically pressure risk assets. Despite the near-term macro risks, longer-term sentiment remains bullish, with growing predictions that Bitcoin could surpass gold’s market capitalization within the next decade as its store-of-value narrative strengthens. The key implication is that any dovish pivot or pause by the Fed could rapidly accelerate Bitcoin’s rebound, while sustained hawkishness may delay its breakout.