Bitcoin News Today: Altcoin ETFs Surge Past Bitcoin Amid Dovish Fed Outlook and Regulatory Clarity

The U.S. cryptocurrency landscape is witnessing a notable shift in investor preferences and regulatory developments as December 2025 unfolds. While Bitcoin ETFs continue to face outflows, altcoin ETFs, particularly those tracking XRP, have attracted over $1 billion in inflows over the past two weeks. This trend reflects a broader market reallocation as institutional investors seek exposure to altcoins with clearer regulatory status. Meanwhile, the Federal Reserve's upcoming interest rate decision is expected to play a pivotal role in shaping market sentiment across both traditional and digital asset classes.

As the Federal Open Market Committee (FOMC) holds its final meeting of 2025, markets are pricing in a high probability of a 25-basis-point rate cut, which could influence volatility in crypto markets. Analysts note that Bitcoin could see a sharp upward move if the Fed signals a dovish stance. With over $1 billion in open positions at risk of liquidation, the outcome of the meeting could lead to rapid price swings.

In addition to macroeconomic concerns, regulatory developments are also reshaping the crypto market.

The Commodity Futures Trading Commission (CFTC) launched a pilot program to allow crypto assets like Bitcoin, Ether, and USDC to be used as collateral in derivatives trading. This move is seen as a major step toward integrating digital assets into traditional financial infrastructure.

How Markets Reacted

Bitcoin's price has shown resilience ahead of the FOMC decision, with institutional buying helping to cushion the market during moments of volatility. On December 8, Bitcoin traded near $92,300, having risen about 5% in a single day as investors front-ran expected Fed easing. Analysts attribute the move to a combination of smart money positioning, exchange outflows, and a flight to quality amid economic uncertainty.

Meanwhile, altcoins like Dogecoin and Shiba Inu are approaching key resistance levels. Both tokens are under pressure to break through critical technical levels before the Fed's decision, as a dovish outcome could fuel risk-on sentiment across the board. A successful breakout for Dogecoin above $0.142 could signal a potential move toward $0.180, while Shiba Inu faces a critical test at $0.0000087.

The XRP market has also seen robust institutional interest, with spot ETFs drawing sustained inflows. These funds, now collectively valued at more than $897 million, have been supported by recent regulatory clarity following the Ripple-SEC settlement. This regulatory resolution has allowed major financial institutions to allocate capital to XRP-based products, accelerating their adoption among institutional investors.

What Analysts Are Watching

The FOMC meeting is a key event to monitor for its potential to shift market dynamics across asset classes. Cryptocurrency markets have historically responded sharply to Fed policy announcements, particularly when rate expectations differ from actual outcomes. A 25-basis-point cut, while expected, could still trigger unexpected volatility if the Fed signals additional easing in 2026. Analysts are also keeping a close eye on Chair Jerome Powell's press conference, where he is expected to provide insights into the Fed's future monetary policy path.

In parallel, the success of altcoin ETFs is being closely watched for signs of broader institutional adoption. The rapid inflows into XRP ETFs have exceeded early inflows for Bitcoin and Ethereum ETFs, suggesting growing investor confidence in altcoins with strong use cases and regulatory clarity. This trend could reshape the institutional landscape in the coming months as more firms evaluate diversified crypto exposure according to market analysis.

Looking ahead, the CFTC's pilot program to accept crypto as collateral is another development that could influence long-term market structure. By allowing Bitcoin, Ether, and USDC to be used as margin in derivatives trading, the initiative represents a significant step toward mainstream adoption. This regulatory shift is expected to enhance liquidity and reduce friction in trading, especially for institutional participants seeking efficient collateral management according to industry experts.

As the market braces for the FOMC outcome and continues to process a flurry of regulatory updates, the coming days will likely define the trajectory of both major and alternative cryptocurrencies. Investors, whether institutional or retail, are navigating a landscape where macroeconomic signals, regulatory clarity, and technical momentum play equal roles in shaping price action.