Crypto markets subsequently experienced a modest increase US Federal Reserve have made another move on the interest rate front, and traders are looking forward to a clearer follow-up. According to reports, the Fed made three consecutive interest rate cuts from September to December, totaling 0.75%. The move was widely expected. Still, market reactions were mixed and somewhat choppy.
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Fed moves and market takeaways
According to CoinEx lead analyst Jeff Ko, much of the Fed’s action was already priced in, and the updated dot chart was a bit more aggressive than some had hoped.
Ko pointed to $40 billion in short-term government bond purchases as a technical move to increase liquidity and lower short-term interest rates, rather than as a broad stimulus program.
The markets viewed the measures as slightly positive. US stocks rose, and that helped Bitcoin find some support again after an early dip.
Santiment and the short-term reaction
Based on reports from the onchain analytics company SantimentEach downgrade has led to a classic “buy the rumor, sell the news” move where initial optimism is followed by short selling.
🇺🇸 The US Fed has made three strategic cuts in the past three months, resulting in a total interest rate cut of 0.75%.
1⃣ September 17, 2025: Fed lowered target range to 4.00%–4.25% (from 4.25%+) at its September 16–17 meeting.
2⃣ October 29, 2025: Fed cuts interest rates to… pic.twitter.com/X6DWypvq5t
— Santiment (@santimentfeed) December 11, 2025
Cuts are seen as bullish for crypto in the long term, but in practice they have still led to short pullbacks. Santiment adds that a small wave of FUD or retail sales is often a signal that the mild post-austerity downturn is over and that a rebound could follow once things calm down.
Technical levels that traders look at
Bitcoin was volatile in the aftermath. It fell below $90,000 and then rose to $93,500 Coin base before reaching nearly $92,300 at the time of reporting. The main resistance is between $97,000 and $108,000.
On the daily chart, BTC remains within a small ascending channel that is in a larger downtrend, and technical traders are noticing a MACD histogram approaching a positive crossover – a sign that some see as possible renewed momentum.
ETF activity was tepid, with only $219 million in net inflows since late November, keeping some investors cautious.
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Dollar Weakness and Stock Signals
A weaker dollar was part of the backdrop; the DXY index fell to 98.36 and is showing bearish momentum on its own MACD.
Nasdaq’s move above its 50-, 100-, and 200-day simple moving averages helped lift risky assets briefly, and that has supported Bitcoin’s recovery efforts.
Still, the correlation with stocks remains uneven: losses in stocks tend to hit Bitcoin harder than gains help, creating an asymmetric risk profile for traders.
Featured image from Impossible Images, chart from TradingView