The Federal Reserve Cuts Rates by 25 Basis Points

2 mins mins

Key Points:

The Federal Reserve lowered interest rates by 25 basis points.
Donald Trump criticized the decision as insufficient.
Impact on crypto markets being monitored closely.

The Federal Reserve reduced interest rates by 25 basis points, sparking criticism from former President Donald Trump, who argued for a more significant cut.

This rate cut may influence cryptocurrency markets through altered liquidity and risk sentiment, potentially impacting Bitcoin and other digital assets in the coming weeks.

Fed Cuts Rates Amid Criticism from Trump

The Federal Reserve, led by Jerome Powell, announced a 25 basis points rate cut. This decision aligns with their ongoing policy adjustment strategy, drawing both attention and critique from political figures. Former President Donald Trump expressed that the cut should have been larger to strengthen economic conditions.

With the current rate adjustment, expectations set a backdrop of increasing liquidity that could influence crypto markets. However, exact implications remain contingent on how these changes reshape broader economic conditions and risk appetite.

“The Fed’s 0.25% cut is far too small – they should have cut much more to keep our economy strong and competitive.”

Market reactions are varied; analysts indicate that crypto markets may slowly respond to this macro shift. Reactions from financial institutions and key stakeholders, including critical commentary from Donald Trump, emphasize ongoing debates about monetary policy adequacy.

Bitcoin’s Movement Under Recent Fed Policy

Did you know? The 25 basis points cut reflects a repeated pattern seen during the 2019 rate cut cycle, where BTC experienced significant increases amid easing conditions.

According to CoinMarketCap, Bitcoin (BTC) currently stands at $92,474.52, with a significant market cap of 1.85 trillion. The asset has seen a 24-hour trading volume of 64.57 billion, experiencing a 0.68% decrease in the last 24 hours, adding to its month-long downtrend of 12.66%.

bitcoin-daily-chart-4929 — Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 21:02 UTC on December 10, 2025. *Source: CoinMarketCap*

The Coincu research team suggests that while rate cuts typically encourage risk-taking, the crypto market’s response may vary given current global economic conditions. Past trends show increased interest in risk assets, but current geopolitical and regulatory landscapes may influence outcomes.

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.