Solana News Today: Fed's Dovish Pivot Sparks Crypto Surge and Market Volatility as December Decision Nears

JPMorgan Chase & Co. has reinforced expectations of a Federal Reserve rate cut in December 2025, citing a dovish policy shift and softening economic indicators. The bank's forecast aligns with growing market conviction, with the CME FedWatch Tool showing a 79% probability of a 25-basis-point reduction as of November 26. This anticipated cut would be the third of the year, following reductions in September and October, and reflects the Fed's balancing act between cooling inflation and supporting a slowing labor market.

The pivot toward easier monetary policy has already sparked a "risk-on" environment, with cryptocurrencies surging as investors anticipate increased liquidity. Bitcoin (BTC) briefly surpassed $107,000 earlier this month, while Ethereum (ETH) and Solana (SOL) also saw significant gains. Analysts attribute this rally to the inverse relationship between interest rates and speculative assets, as lower borrowing costs reduce the opportunity cost of holding non-yielding digital currencies. Juan Leon, a senior investment strategist at Bitwise, called the potential nomination of Kevin Hassett-a Trump-aligned economist known for advocating aggressive rate cuts-"strongly bullish" for crypto markets.

Hassett, currently the White House's National Economic Council director, is a leading candidate to replace Fed Chair Jerome Powell, according to Bloomberg and MUFG analysts. His dovish stance and past advisory role at Coinbase have positioned him as a crypto-friendly figure who could influence regulatory approaches to digital assets. However, Trump's push for greater Fed control has raised concerns about the central bank's independence, particularly after his failed attempt to remove Governor Lisa Cook earlier this year.

Market reactions to the rate-cut narrative have been widespread. European stocks rose as investors priced in a Fed pivot, while U.S. Treasury yields declined, steepening the yield curve. The dollar weakened, hitting a one-week low, and gold prices climbed as a hedge against inflation and currency devaluation. In the cryptocurrency sector, Upexi-a Nasdaq-listed firm holding over 2 million SOL-raised $23 million in a private offering to bolster its Solana treasury amid volatile price swings.

JPMorgan's analysis highlights sectoral winners and losers from a rate cut. Traditional banks face margin compression as net interest margins shrink, while growth-oriented tech stocks and fintech firms stand to benefit from cheaper capital. The cryptocurrency ecosystem, including exchanges like Coinbase and miners such as Riot Platforms, is also poised for gains as trading volumes and asset valuations rise. Conversely, stablecoin issuers and real-world asset protocols may see profitability pressures in a lower-yield environment.

Looking ahead, the Fed's December 9–10 meeting will be critical. While a 25-basis-point cut is widely expected, deviations-such as a larger 50-basis-point reduction or no cut at all-could trigger sharp market volatility. Analysts warn that short-term corrections remain possible, with Bitcoin's price still vulnerable to unfilled CME gaps and sustained selling by short-term holders. However, long-term bullish fundamentals, including the Fed's end of quantitative tightening and the potential for a "soft landing," suggest a broader trend toward accommodative policy.