Federal Reserve’s Interest Rate Cut Sparks Mixed Reactions

3 mins mins

Key Points:

Federal Reserve cuts interest rates by 25 basis points during December meeting.
Analysts view the move as a cautious fiscal signal.
Bitcoin’s market reaction lacked a significant Christmas rally boost.

The Federal Reserve, chaired by Jerome Powell, adjusted its policy on December 10, 2025, by reducing the federal funds target range by 25 basis points to 3.50–3.75%.

This cautious Fed move is seen as a signal, not a shift, affecting risk assets, including Bitcoin, due to its potential impact on liquidity and market sentiment.

Fed’s 25 Basis Point Cut Amidst Economic Challenges

The Federal Reserve’s recent decision to cut interest rates by 25 basis points was driven by moderating job gains and somewhat elevated inflation, signalling a cautious outlook. Chair Jerome Powell emphasized, “carefully evaluate… incoming data, the evolving outlook and the balance of risks” before deciding on additional changes. The adjustment has tightened speculation around future rate cuts, leaving investors pondering the landscape. Despite the rate cut’s attempt to signal caution, market volatility remains. Bitcoin did not experience a significant Christmas rally as some hoped, showing tempered enthusiasm among market participants.

Analysts and industry leaders offered mixed reactions to the Fed’s adjustment. Nick Parklin from Coin Bureau noted the absence of expected hawkishness and its resultant unclear effects on risk assets. Timothy Misir of BRN Research remarked on institutional interest conflicting with continued retail selling pressure.

Bitcoin Faces Market Fluctuations as Price Drops 2.10%

Did you know? The Federal Reserve’s cautious signaling mirrors its 2019 post-rate-cut behavior when it also aimed for gradual easing without full commitment to further aggressive cuts.

Bitcoin, currently priced at $90,241.77, holds a market cap of $1.80 trillion, with a trading volume of $66.91 billion. Presently, Bitcoin’s value shows a decline of 2.10% in the last 24 hours, extending a downturn that has seen it drop 21.47% over three months. Data sourced from CoinMarketCap outlines these comprehensive metrics.

bitcoin-daily-chart-4953 — Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 12:02 UTC on December 11, 2025. *Source: CoinMarketCap*

The Coincu research team suggests potential for minimal immediate regulatory or technological shifts following the Federal Reserve’s latest move, but highlights the ongoing importance of monitored inflation and employment data in future financial directions.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.