US Banking Regulator Opens Door to Direct Bitcoin Trading

While today's market focus is squarely on the Federal Reserve's interest rate decision, a pivotal regulatory shift has already occurred behind the scenes. A new directive now permits U.S. banks to engage directly in cryptocurrency transactions, a development analysts suggest may hold greater long-term significance for Bitcoin's adoption than any immediate monetary policy moves.

The most structurally consequential news came from the U.S. Office of the Comptroller of the Currency (OCC). The agency issued "Interpretive Letter 1188," granting national banks the authority to execute "riskless principal" transactions involving crypto assets.

This ruling allows financial institutions to act as intermediaries: they can purchase Bitcoin from one client and simultaneously sell it to another. This mechanism enables banks to provide market liquidity without the obligation to hold the volatile assets on their own balance sheets. Market experts view this as a substantial deregulatory move, one that effectively integrates cryptocurrency trading desks into the core of traditional banking infrastructure.

Cautious Trading Ahead of Fed Announcement

Market participants are trading cautiously ahead of the Federal Reserve's meeting, resulting in Bitcoin's price stabilizing just above the $92,000 level. Market expectations are clear, with approximately a 90% probability priced in for a rate cut to be announced this Wednesday.

Sentiment is further supported by the official conclusion of the Quantitative Tightening program in early December. This shift in liquidity conditions now coincides with anticipated monetary policy easing. However, the crucial factor for future price direction will not be the rate decision alone, but particularly the central bank's outlook and projections for 2026.

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Analysts Temper Short-Term Expectations

Despite the positive regulatory developments, some institutions are moderating their near-term forecasts. Standard Chartered, previously known for highly bullish predictions, has revised its year-end Bitcoin price target down from $200,000 to $100,000.

The bank's strategists cited slower inflows into spot Bitcoin ETFs and a plateau in corporate purchasing activity as reasons for the adjustment. While the institution maintains its long-term target of $500,000, it has extended the timeframe for achieving this to 2030. This reflects a growing recognition that institutional adoption is progressing in a gradual, step-by-step manner rather than through a sudden explosion.

An exception to this trend is the firm Hyperscale Data, which continues to pursue an aggressive treasury strategy. The corporation now holds Bitcoin valued at approximately $75 million, a sum representing a notable 83% of its own market capitalization, and has signaled plans for further acquisitions.

In the immediate term, market direction hinges on the tone set by the Fed. A decisively "dovish" rate cut could provide the necessary momentum to challenge upper resistance levels. Conversely, should the central bank couple a rate reduction with a message of ongoing caution, the support zone around $90,000 is likely to be tested once again.