- The Federal Reserve reduced interest rates amidst leadership changes and a cooling labor market.
- The decision could influence crypto markets via liquidity shifts.
- Rate cut expectations differ; economic transparency continues to be pivotal.
On December 10, 2025, the Federal Reserve lowered the federal funds rate by 25 basis points during the FOMC meeting, reflecting internal disagreements on future monetary policy direction.
This rate cut impacts financial conditions, influencing risk assets, including Bitcoin and Ethereum, by affecting USD liquidity and global interest rate environments essential for crypto markets.
Federal Reserve Splits on Rate Cut Decision Amid U.S. Economic Shifts
The Federal Reserve’s recent decision to lower interest rates marks a significant move amid an observed cooling in the labor market. With a vote split of 9 to 3, the central bank aims to address persistent economic risks. Jerome Powell emphasized the gradual cooldown in job growth and the nuanced inflationary landscape, stating, “Job gains have slowed this year, and the unemployment rate has edged up through September. More recent indicators are consistent with these developments.” FOMC Statement.
Implications of this decision are multifaceted, weighing on market expectations of more hawkish policy shifts. Notably, despite the rate cut, the consensus within the Federal Open Market Committee (FOMC) suggests a reluctance to hasten further reductions, signaling sustained caution.
Reactions from global markets highlight a blend of anticipation and skepticism. Prominent figures across the financial sector acknowledge the Federal Reserve’s cautious approach, which underscores the challenging economic landscape. Powell confirmed that a single rate cut is anticipated in 2026, diverging from market forecasts of multiple cuts.
Bitcoin Movement Influenced by Federal Rate Decision
Did you know? The Federal Reserve’s rate cuts have historically led to increased volatility in the cryptocurrency markets.
Bitcoin (BTC) experienced a 2.51% decline over the last 24 hours, trading at $90,111.63 according to CoinMarketCap data. BTC’s extended downturn, with a 21.96% drop over 90 days, coincides with macroeconomic developments, including shifts in U.S. monetary policy and Federal Reserve’s statements as reported in this monetary policy update.
Insights from the Coincu research team highlight that the Federal Reserve’s current policy measures may limit crypto’s rally potential. Historical actions of modest rate cuts have often led to increased volatility and opportunity shifts in digital asset markets.
| 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. |
No tags available.
Other Posts
- Amplify 2024: Ohio’s Premier Blockchain Summit
- Polymarket Announces U.S. Beta Relaunch Amid Market Buzz
- U.S. Treasury Proposes New Tax Relief Regulations
- Radiant Capital Faces $50M Loss in Major Security Breach
- SEGG Media Unveils $300 Million Crypto Reserve Plan
- 21Shares Files S-1 With SEC to Launch Hyperliquid ($HYPE) ETF
- Hong Kong Sentences Influencer for Unlicensed Investment Advice
- Franklin Templeton Signals TradFi and Crypto Integration
- Circle Mints $500 Million USDC on Solana Blockchain
- Circle Focuses on Expanding USDC Use in Hong Kong
- Western Union Trials Stablecoin System for Remittance Innovation
- GMGN Completes Compensation for MEV-Affected Users
- Is MetaMask Preparing for Its Long-Awaited MASK Token Airdrop?
- BitMine Expands Ethereum Holdings to $13B With Major Weekly Purchase
- U.S. House Passes Temporary Funding Bill for Continued Operations
- DeXe Protocol Begins Trading on Aster Platform
- Federal Reserve Reaffirms Neutral Stance on Cryptocurrencies
- Balancer Hacks: 2,000 ETH Laundered via Tornado Cash
- Ethereum Activates Fusaka Upgrade, Boosting Rollup Throughput
- Paradigm Stakes $700 Million in HYPE, Shaking Up Crypto Governance
- Amplify 2024: Ohio’s Premier Blockchain Summit
- Polymarket Announces U.S. Beta Relaunch Amid Market Buzz
- U.S. Treasury Proposes New Tax Relief Regulations
- Radiant Capital Faces $50M Loss in Major Security Breach
- SEGG Media Unveils $300 Million Crypto Reserve Plan
- 21Shares Files S-1 With SEC to Launch Hyperliquid ($HYPE) ETF
- Hong Kong Sentences Influencer for Unlicensed Investment Advice
- Franklin Templeton Signals TradFi and Crypto Integration
- Circle Mints $500 Million USDC on Solana Blockchain
- Circle Focuses on Expanding USDC Use in Hong Kong
- Western Union Trials Stablecoin System for Remittance Innovation
- GMGN Completes Compensation for MEV-Affected Users
- Is MetaMask Preparing for Its Long-Awaited MASK Token Airdrop?
- BitMine Expands Ethereum Holdings to $13B With Major Weekly Purchase
- U.S. House Passes Temporary Funding Bill for Continued Operations
- DeXe Protocol Begins Trading on Aster Platform
- Federal Reserve Reaffirms Neutral Stance on Cryptocurrencies
- Balancer Hacks: 2,000 ETH Laundered via Tornado Cash
- Ethereum Activates Fusaka Upgrade, Boosting Rollup Throughput
- Paradigm Stakes $700 Million in HYPE, Shaking Up Crypto Governance
- Amplify 2024: Ohio’s Premier Blockchain Summit
- Polymarket Announces U.S. Beta Relaunch Amid Market Buzz
- U.S. Treasury Proposes New Tax Relief Regulations
- Radiant Capital Faces $50M Loss in Major Security Breach
- SEGG Media Unveils $300 Million Crypto Reserve Plan
- 21Shares Files S-1 With SEC to Launch Hyperliquid ($HYPE) ETF
- Hong Kong Sentences Influencer for Unlicensed Investment Advice
- Franklin Templeton Signals TradFi and Crypto Integration
- Circle Mints $500 Million USDC on Solana Blockchain
- Circle Focuses on Expanding USDC Use in Hong Kong
- Western Union Trials Stablecoin System for Remittance Innovation
- GMGN Completes Compensation for MEV-Affected Users
- Is MetaMask Preparing for Its Long-Awaited MASK Token Airdrop?
- BitMine Expands Ethereum Holdings to $13B With Major Weekly Purchase
- U.S. House Passes Temporary Funding Bill for Continued Operations
- DeXe Protocol Begins Trading on Aster Platform
- Federal Reserve Reaffirms Neutral Stance on Cryptocurrencies
- Balancer Hacks: 2,000 ETH Laundered via Tornado Cash
- Ethereum Activates Fusaka Upgrade, Boosting Rollup Throughput
- Paradigm Stakes $700 Million in HYPE, Shaking Up Crypto Governance
Latest
Federal Reserve Cuts Interest Rates Amid Labor Market Concerns
Press Release
BOLTS Launches Quantum-Resilience Pilot On Canton Network To Future-Proof $6T Real-World Assets
