• Federal Reserve signals tighter policy, pushing December rate hike odds to about 77% and creating a tougher liquidity backdrop for crypto markets.
• Bitcoin (CRYPTO:BTC) fell 3.8% during the week while Ethereum (CRYPTO:ETH) dropped 1.2% as traders reacted to changing rate expectations.
• Wintermute said tighter monetary policy could slow liquidity flows into crypto through ETFs, stablecoins and digital asset treasuries.

Crypto markets faced tighter liquidity conditions after the Federal Reserve kept interest rates unchanged while lifting its median 2026 rate outlook to 3.8% from 3.4%, prompting Wintermute to warn that capital flows into digital assets could slow.

The policy shift marked a change from earlier expectations for easier monetary…