The Federal Reserve, in a 9–3 vote by the Federal Open Market Committee (FOMC), announced a 25 basis point interest rate cut on Wednesday, lowering the federal funds rate to a range of 3.5% to 3.75%. The decision was paired with cautious language, pledging to "carefully assess incoming data" before making further adjustments, which markets interpreted as signaling a higher bar for additional easing.
The immediate market reaction was volatile. Bitcoin whipsawed between $93,200 and $91,700, while Ether traded in a choppy $3,340–$3,440 range. Other major cryptocurrencies like Solana, XRP, and BNB saw similar patterns. Adding to the volatility, the Fed announced it will restart Treasury bill purchases, beginning with $40 billion on December 12—a move some analysts refer to as "QE-lite."
Analyst outlooks were mixed. Michael van de Poppe characterized the cut as a "great move" for Bitcoin, suggesting a breakout above $92,000 could pave a path toward $100,000. However, market expert Ash Crypto noted a historical pattern where Bitcoin has declined 5–10% following similar 25 bps cuts, though he acknowledged the current setup differs. CryptoQuant analysts suggested Bitcoin's rally could extend toward $112,000 if the Fed turns more decisively dovish and BTC breaks key resistance levels at $99,000 and $102,000.
Political and institutional commentary added context. Kevin Hassett, a leading candidate to be the next Fed chair, told the Wall Street Journal CEO Council there is "plenty of room" for additional cuts if data supports it. Meanwhile, the CME FedWatch tool now shows a nearly 40% probability of another quarter-point cut by the Fed's March meeting. Nic Puckrin of The Coin Bureau noted the decision "wasn't quite as hawkish as many... were expecting," but projections for fewer cuts next year are tempering optimism and injecting uncertainty into the macro outlook.
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