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- Saudi Arabia's Bitcoin mining plan and major AI investments are boosting global crypto sentiment and reshaping market expectations

- Fed uncertainty and mixed U.S. market signals are limiting momentum even as traders monitor December's crypto legislation vote

Global crypto markets are responding to a tight mix of political maneuvers, regulatory signals, and large-scale corporate actions , according to new insights from Santiment. Sentiment has remained sensitive as traders react to shifting expectations around U.S. monetary policy and growing geopolitical involvement in digital-asset infrastructure.

Saudi Mining Strategy Becomes a Market Driver

Saudi Arabia's decision to begin mining Bitcoin (CRYPTO: $BTC ) has emerged as a major catalyst. The move aligns with its $1 trillion U.S. investment pledge and ongoing collaboration with Nvidia and Elon Musk on a 500MW AI supercomputing project. The kingdom's newly reinforced status as a major non-NATO ally strengthens its alignment with U.S. technology interests, placing it closer to the center of future blockchain and AI development.

Investors are interpreting the strategy as a long-term attempt to fuse energy production with high-performance computing capabilities. As a result, attention has shifted toward the Middle East's growing influence in digital assets, especially as regional governments accelerate investment in infrastructure that supports mining, AI training, and tokenization initiatives.

Fed Signals Cloud Market Structure and Rate Outlook

The U.S. Federal Reserve's policy direction is creating fresh uncertainty. The odds of a December rate cut have dropped sharply, with the CME FedWatch tool now showing a 33% probability of a 25-basis-point reduction, down from 50.1% just days ago. Recent minutes from the FOMC meeting indicated that many officials support keeping rates steady due to persistent inflation concerns.

Jerome Powell's tone added further pressure. His remarks reinforced the possibility of extended tight policy, which prompted markets to trim expectations for near-term easing. Investors are also reacting to President Donald Trump's push to replace the Fed Chair before Christmas, a move that is injecting political tension into central bank stability.

The U.S. dollar index climbed above 100, reaching a six-month high. Treasury yields also stayed firm, with the 10-year note holding above 4.1%. Because of these shifts, analysts are watching key labor data for clues that could influence the rate path into early 2026.

Even so, crypto sentiment has improved marginally as lawmakers prepare for an upcoming Senate vote on crypto legislation. The potential approval of a market-structure bill has introduced optimism across digital assets despite broader macro headwinds.

Institutional Moves Signal Strategic Adjustments

Major players in the crypto industry are positioning for their next phase of growth. Kraken advanced its long-planned public listing by submitting confidential IPO paperwork. Backed by major investors such as Citadel and Jane Street, the exchange targets a 2026 debut and holds an estimated valuation of $20 billion.

BlackRock also captured attention as it filed for a staked Ethereum Trust in Delaware and shifted more than $800 million worth of BTC and ETH (CRYPTO:$ETH ) to Coinbase Prime (NASDAQ: $COIN . Analysts interpret the move as preparation for a staked ETH ETF.

Meanwhile, broader crypto markets are attempting a partial rebound. Bitcoin trades near $91,650, recovering from a dip to $88,526, and pushing toward the $92,000 mark. Ethereum trades around $3,000, while XRP holds at $2.11. The global crypto market cap rose 1.3% to $3.12 trillion, though volatility remains elevated.