One week could decide what your stocks, your Bitcoin (BTC), and your dollars are worth by Christmas. From Wednesday to Friday, the Federal Reserve meets, inflation data lands, and $11 billion in Bitcoin bets expire.
A month ago, traders thought a rate hike this week was likely. Today, they put the odds below one in 10. Yet almost nobody on Wall Street thinks the Fed is done.
In September, the Fed raised interest rates for the first time since 2023. The Fed’s September hike put its key rate between 3.75% and 4.00%.
That number touches almost everything. It shapes what people pay on mortgages, car loans, and credit cards.
It also decides where big money goes. When safe savings pay more, fewer investors want to gamble on tech stocks or crypto.
On Wednesday, the Fed is expected to sit still. CME FedWatch puts the chance of no change at 90.6%. A month ago, a hike was the favorite at 64.2%.
December is a different story. FedWatch gives a December hike 68% odds, according to CME FedWatch Tool. In a Reuters poll, all 100 economists surveyed expect one.
So why wait? Yardeni Research points to the calendar, not the data.
“We believe the committee should hike on Wednesday but won’t because the midterm elections are so close,” the researchers indicated.
Americans vote in the midterms on November 3. Fed Chair Kevin Warsh faces reporters at 2:30 p.m. ET on Wednesday.
Thursday morning brings the number the Fed trusts most. The PCE price index tracks how fast prices rise for what Americans buy.
Economists expect prices to be 3.7% higher than a year ago, per MarketWatch. The Fed’s goal is 2%. It is also moving the wrong way, up from 3.4% in August.
Core PCE much cooler than expected, as previewed:PCE 0.3% MoM, Exp. 0.3%PCE 3.4% YoY, Exp. 3.7%PCE Core 0.2% MoM, Exp. 0.3%, PCE Core 3.0% YoY, Exp. 3.3% https://t.co/vZws3Ik41Q
— zerohedge (@zerohedge) September 30, 2026
The economy is not cooling to help. Growth for the July to September quarter is expected at 3.2%, up from 2.2% the quarter before.
Bond markets are already flashing warnings. The 10-year Treasury yield, which steers mortgage rates, closed near 5% on Friday, per Mortgage News Daily. It hit 5.33% on October 14.
A hotter number would strengthen the case for a December hike. A cooler one would weaken it.
History shows the stakes. In May and June, Bitcoin slid from about $82,000 to the low $60,000s as rate-cut hopes faded, BeInCrypto reported.
Here is the twist. When the Fed finally hiked in September, Bitcoin went up, from about $75,350 to above $76,100 within minutes.
Europe’s central bank meets Thursday. In a Reuters poll cited by Admiral Markets, 70 of 73 economists expect it to hold at 2.50%. Most expect a hike in December.
Reuters Poll: All 100 Economists Expect Fed Rate Hike in DecemberA Reuters poll found that 94 of 100 economists expect the Federal Reserve to hold interest rates at 3.75%–4.00% at its October m… https://t.co/uaMMeBzh67
— BigBreakingWire (@BigBreakingWire) October 20, 2026
Japan’s central bank decides Friday. Its 1.25% rate is already the highest since 1995.
That matters far beyond Tokyo. Investors have long borrowed cheap yen to buy assets elsewhere, including crypto. As BeInCrypto reported, rising Japanese rate expectations could force those trades to unwind.
Bitcoin traded at $80,472 on Sunday, per BeInCrypto data. That is well short of its early October peak above $86,000.
Then comes Friday. At 4 a.m. ET, Bitcoin options worth $10.97 billion expire on Deribit. Options are contracts that let traders buy or sell at a fixed price by a set date.
It is the biggest expiry on Deribit’s calendar, covering 35% of all open Bitcoin contracts there.
Bets on higher prices (calls) outnumber bets on lower ones (puts) almost two to one.
The single biggest bet, about 19,950 BTC, targets $95,000. The Bitcoin price today would need to climb about 18% in five days to get there.
Deribit’s data tells a different story. At $78,000, the largest share of these contracts would expire worthless.
By Friday, investors will know far more about December. The Fed meets again December 8 to 9, Europe on December 17, and Japan on December 18.
Markets price a hike at all three above 70%. This week decides whether those bets grow or start to crack.