Hedge funds increase their stablecoin positions ahead of the FOMC decision.
Date: 2025-12-11 Author: Henry Casey Categories: BUSINESS
Ahead of the December FOMC meeting, institutional players are demonstrating a noticeable shift toward stablecoins. According to the analytical platform CryptoQuant, major crypto exchanges are increasingly seeing a decline in Bitcoin volumes, while USDT and USDC reserves continue to increase. This reversal indicates that hedge funds are adopting a wait-and-see approach, preparing for potential price fluctuations.
According to experts, an increase in stablecoin holdings is traditionally considered a preparatory stage for events that could trigger increased market volatility. This strategy allows participants to quickly react to price changes without resorting to fiat and missing out on opportunities to quickly reload positions.
Analysts note that the current behavior pattern is reminiscent of processes observed between August and October 2025. Back then, participants also actively opened long positions in anticipation of Federal Reserve decisions, which was accompanied by increased funding volumes and renewed local Bitcoin price highs. However, following official announcements, the market invariably experienced sharp pullbacks in both rates and the price of the leading cryptocurrency.
The situation is currently unfolding along a similar pattern: open interest on the CME remains flat, large investors are in no rush to increase exposure, and the share of stablecoins on exchanges continues to grow. This scenario indicates growing caution and a lack of consensus regarding the regulator's decision.
Experts emphasize that regardless of whether the Federal Reserve cuts rates, the period around the FOMC meeting is typically marked by a significant increase in volatility. Market participants are advised to avoid attempting to profit from short-term movements in the lead-up to the announcement, focusing instead on prudent risk management and preserving liquidity.
Hedge funds' shift to stablecoins thus reflects a desire to minimize uncertainty and maintain flexibility in trading strategies ahead of December's key macroeconomic event.
