BTC and ETH investors, take note—the Fed's latest move is pretty interesting.

A rate cut? That's pretty much a given. But here’s the catch—the Fed is now embroiled in internal disputes. This time, Powell is trying not to offend either side, making things extremely challenging.

December 8 is a crucial date. The market widely expects a rate cut this week, but what’s really making people nervous is: will there be another cut in January? The Fed is now split into two camps. The hawks are worried about a resurgence of inflation and are firmly against easing policy too quickly; the doves are focused on employment data and believe maintaining an accommodative stance is necessary. This level of internal division hasn't been seen in years.

Wall Street is calling the outlook a “hawkish rate cut”—sounds contradictory, right? In practice, it might go like this: Powell cuts rates to satisfy the doves but immediately hints that “January isn’t a sure thing,” giving the hawks some reassurance. Analysts at Bank of America have bluntly stated that Powell is facing the most divided committee in history. They suspect this meeting could be a repeat of October’s playbook—cut rates while delivering some hawkish remarks to steady the situation. But how effective will this be? Even the analysts are unsure.

After all, a slew of economic data will be released between the two meetings, some of which have been delayed due to government shutdowns, so there are countless variables. JPMorgan economists believe Powell will emphasize one key signal: after this rate cut, rates will be near “neutral”—a level that neither stimulates nor restrains the economy. Want further cuts? Only if the labor market genuinely deteriorates; predictions alone won’t be enough.

For the crypto market, this kind of “cutting rates without promising more cuts” stance could trigger volatility in the short term.