Federal Reserve Enacts Third Consecutive 25bps Rate Cut

2 mins mins

Key Points:

Federal Reserve cuts rate by 25bps, aligning with expectations.
Brings total rate cuts to 75bps for 2025.
Market responds positively, easing financial conditions.

The Federal Reserve, led by Chair Jerome Powell, has reduced the benchmark interest rate by 25 basis points to a range of 3.5% to 3.75% during its December 2025 meeting.

This cut, the third in a series, aligns with market expectations, potentially influencing macroeconomic conditions and impacting cryptocurrency markets through altered risk-free yield dynamics.

Federal Reserve’s 75bps Cuts Fuel Market Optimism

The Federal Open Market Committee, chaired by Jerome Powell, executed the third consecutive reduction in the federal funds rate for 2025, shifting the range to 3.50%-3.75%. This adjustment aligns with market expectations and continues the year’s trend of easing monetary policy. “In support of its goals and in light of the shift in the balance of risks, the Committee decided to lower the target range for the federal funds rate by 1/4 percentage point to 3-1/2 to 3-3/4 percent,” stated the Federal Open Market Committee.

Reduced interest rates have already begun affecting the financial markets, notably encouraging investments in equities and other risk assets. Immediate market reactions include strengthened stock performance, especially in sectors sensitive to economic growth signals.

Experts from Coincu Research suggest that the continued easing of interest rates will likely support increased liquidity in the crypto market. This environment may favor decentralized finance sectors, with potential boosts in both trading volumes and investor sentiment amid reduced yields in traditional financial settings.

Bitcoin Trends Amidst Monetary Easing and Rate Cuts

Did you know? Lowering interest rates historically benefits cryptocurrencies like Bitcoin, mirroring the post-COVID monetary easing period’s asset growth.

Bitcoin’s market price is currently at $92,366.07, with a market cap reaching $1.84 trillion, according to CoinMarketCap. The dominant cryptocurrency has shown a minor decrease of 0.22% over the past 24 hours, witnessing a broader trend with a 19.70% decline over the past 90 days. The trading volume for the last day was approximately $65.70 billion, with a slight dip of 1.14%.

bitcoin-daily-chart-4932 — Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 22:31 UTC on December 10, 2025. *Source: CoinMarketCap*

Industry experts observe these developments as a pivotal moment for economic expansion, with expectations set for a continued stable recovery.

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.