Points of Focus  

• Fed cuts rate to 3.5%–3.75% but projects only one more in 2026.  
• BTC dips to $91,700, ETH ranges between $3,340–$3,440 in post-decision volatility.  
• “QE-lite” bill, enabling restart of Treasury bill purchases, starts on December 12.

Bitcoin and Ether tumbled in choppy trading numbers on December 10, 2025, after the Federal Reserve cut its benchmark rate by 25 points but signaled a higher bar for additional easing, with BTC dipping as low as $91,700 and ETH swinging between $3,340 and $3,440 in the face of tempered market optimism. 

The FOMC cut the federal funds rate by 25 points to 3.5%–3.75% in a 9–3 vote, with two regional Fed presidents dissenting and Governor Stephen Miran in favor of a larger 50-basis-point reduction. Markets showed a brief rally following the decision, but any gains made were quickly evaporated as investors digested the Fed’s return to cautious language, such as a commitment to “carefully assess incoming data”, which is typically used when there is expected to be a pause in further easing.

The central bank also announced a restart of Treasury bill purchases starting December 12 at $40 billion, a move which has been dubbed “QE-lite” by analysts, though massively overshadowed by the hawkish tilt. It is widely expected to add to the ongoing volatility.

Bitcoin traded at $91,193.90, down 1.32%, while Ether held a narrow range with modest losses. Top altcoins like Solana, XRP, and BNB mirrored the volatility, as futures markets adjusted to a 40% probability of a March cut, per CME FedWatch.

Some analysts are of the opinion that the upside to $112,000 hinges on dovish signals and BTC breaking $99,000 resistance, but “today’s pause-style language may complicate that setup.”  Another camp believes that the FOMC decision wasn’t quite as hawkish as many market participants were expecting, and that projections showing only one rate cut next year are tempering that optimism.” 

David Hernandez of 21Shares, which recently got approval for its first 2x leveraged Sui ETF on Nasdaq, remains bullish, “Today’s rate cut is a life ring for a sunk Bitcoin.”

The mixed signals could cap risk-asset gains into year-end, with analysts noting the Fed’s split vote injects uncertainty despite the immediate relief.

Bitcoin traded at $91,193.90 on December 10, down 2.46%.