Upcoming Fed Decision Looms as Catalyst for Crypto Repricing, Burry's Warning Amplifies Market Anxiety

A key upcoming decision by the Federal Reserve is emerging as a potential inflection point for cryptocurrency valuations, with analysts warning of a possible revaluation across major digital assets. The Federal Open Market Committee is expected to deliver its next policy statement in early January 2026, where shifts in interest rate guidance or inflation expectations could dramatically alter risk appetite in global markets. The concern is amplified by a public statement from Michael Burry, the investor known for predicting the 2008 housing crisis, who recently cautioned that changing monetary conditions may lead to a broad reassessment of asset valuations, including those in the crypto sector. Burry’s remarks have reignited discussion about the sensitivity of Bitcoin (BTC-USD), Ethereum (ETH-USD), and Solana (SOL-USD) to macroeconomic signals. Current market data shows Bitcoin trading at $63,200, Ethereum at $3,810, and Solana at $147.50 as of late December 2025. These levels reflect a 14% increase in BTC-USD and 22% in ETH-USD year-to-date, driven largely by optimism around potential rate cuts. However, any sign of prolonged rate stability or hawkish pivot from the Fed could reverse this momentum, with historical data suggesting crypto assets have a 73% correlation with U.S. 10-year Treasury yields in the short term. Traders and institutional investors are now closely monitoring Fed communications for cues on the timing and pace of rate reductions. A delay beyond Q1 2026 could trigger a 10–15% correction across major crypto benchmarks, according to risk models. Hedge funds and crypto ETFs are also adjusting positions ahead of the announcement, signaling heightened sensitivity to macroeconomic risk.