Cryptocurrency markets surged on Friday after comments from New York Federal Reserve President John Williams reignited confidence that the U.S. central bank may deliver a long-awaited interest rate cut in December. His remarks, which pointed to a possible shift away from the Fed’s restrictive stance, immediately triggered optimism across digital assets already under pressure from a weeks-long liquidity squeeze.

Speaking at an event hosted by the Central Bank of Chile, Williams described current monetary policy as “somewhat restrictive,” adding that the Fed may need to “adjust further” in the coming weeks to move interest rates closer to a neutral level. His position matters—Williams is a voting member of the Federal Open Market Committee (FOMC), giving his words significant influence over market expectations.

Traders responded instantly. According to futures data, expectations for a 25-basis-point rate cut at the December 9–10 meeting jumped to nearly 60%, signaling renewed hope that the Fed could pivot sooner than anticipated.

Crypto Rebounds After Weeks of Outflows

Bitcoin and Ethereum—both of which suffered steep declines in recent weeks—climbed sharply on the heels of the policy speculation. Analysts at Bank of America reported that Bitcoin had dropped more than 35% and Ethereum over 45% during the latest downturn, a selloff partially driven by massive withdrawals from crypto investment funds. Over $2.2 billion exited crypto funds this week alone, marking the second-largest weekly outflow ever recorded.

Michael Hartnett, one of Bank of America’s top strategists, noted that crypto markets often react first to changes in liquidity. “The earliest signs of a Fed reversal will appear in crypto,” he argued, suggesting that digital assets typically lead shifts in speculative activity.

Yet, the rally remains delicate. Internal disagreements within the Fed could delay any decisive action.

Hawks Push Back as Fed Debate Intensifies

Not all central bank officials share Williams’ tone. Dallas Fed President Lorie Logan warned that pushing rate cuts too aggressively could undermine progress in fighting inflation. Logan, who will vote on the FOMC in 2026, stressed that it is “too soon” to judge the level of restrictiveness in current monetary policy—especially after the committee already implemented recent 25-basis-point reductions.

Minutes from the last FOMC meeting highlight a widening split. Policymakers remain divided on whether the next move should be a pause, a quarter-point cut, or even a half-point reduction. With October inflation data still delayed, analysts say the uncertainty could intensify.

Mohamed El-Erian, a former Fed adviser and widely followed economist, cautioned investors against assuming that Williams’ comments guarantee a December policy shift. He warned that without new inflation data, Federal Reserve Chair Jerome Powell faces the challenge of uniting a divided committee before the next meeting.

Even so, U.S. equities edged higher as market tools placed the probability of a December cut at nearly 70%.

Binance Japan and PayPay Launch Instant Crypto Trading System

Amid the global market turbulence, a major development emerged from Japan’s digital asset industry. Binance Japan and PayPay—one of Japan’s largest mobile payment platforms—announced a new integration that allows users to buy crypto directly with PayPay Money and even top up their PayPay balance using proceeds from crypto sales.

The service enables seamless, one-click deposits and withdrawals on Binance Japan’s spot trading platform, available 24/7 with a minimum deposit of just JPY 1,000. Users can also combine PayPay Money with PayPay Points to complete transactions.

Previously, Japanese users were limited to domestic bank transfers or external wallets for deposits and withdrawals. This new integration eliminates friction and could dramatically accelerate crypto adoption among mainstream users.

With Binance serving more than 290 million users worldwide, the Japanese arm—launched in 2023—continues to expand its offerings. PayPay’s investment in Binance Japan underscores a growing collaboration aimed at standardizing everyday crypto use.

FAQ

1. Why did crypto prices jump this week?
Because comments from NY Fed President John Williams raised expectations of a possible interest rate cut in December.

2. How much have investors pulled from crypto funds?
Over $2.2 billion exited this week, the second-largest outflow on record.

3. What is the disagreement inside the Federal Reserve?
Members are split on whether to hold rates steady, cut by 25 bps, or cut by 50 bps.

4. What is the new Binance Japan–PayPay feature?
Users can now buy crypto using PayPay Money and top up PayPay balances with crypto sale proceeds.

5. Is crypto trading via PayPay available 24/7?
Yes—except during scheduled system maintenance.