Eastern Time, December 10: The Federal Reserve announced a 25 basis point cut to its benchmark interest rate. Following the decision, Bitcoin briefly surged past $94,000 before facing selling pressure and pulling back.
According to data from the Gate trading platform as of December 11, Bitcoin is currently quoted at $91,012, marking a 1.09% decline over the past 24 hours. At the same time, the price of Ethereum also dropped to $3,260, down 1.93% in 24 hours.
Market analysts note that this is a classic "buy the rumor, sell the news" scenario, reflecting traders taking profits on a rate cut that was already priced in.
01 Market Reaction
The Federal Reserve’s final rate decision of 2025 has been settled. As widely expected, the Fed announced a 25 basis point rate cut.
After the announcement, the crypto market experienced sharp volatility. The price of Bitcoin spiked quickly, breaking through the $94,000 resistance and reaching a high near $94,477.
However, the rally was short-lived. Strong selling pressure quickly drove prices back down. As of December 11, Bitcoin had retreated to around $91,012, a 1.09% drop over 24 hours.
Driven by Bitcoin’s movement, major cryptocurrencies generally saw similar surges followed by pullbacks. Ethereum also experienced rapid swings, briefly breaking above $3,400 before falling back to $3,260—a 1.93% decline in 24 hours.
02 Technical Perspective
From a technical analysis standpoint, Bitcoin’s reversal near $94,477 indicates clear resistance at that level.
Gate platform data shows immediate support for Bitcoin around $90,708, with resistance at $94,477. The price pullback suggests buying momentum faded near resistance, as traders opted to take profits following the Fed’s announcement.
For Ethereum, technical support sits at $3,243, with resistance at $3,447. The current price is hovering just above support, but upward momentum remains weak.
These technical patterns are closely tied to market liquidity conditions. While the Fed has cut rates, traders are more focused on the details of its liquidity operations.
The Fed’s policy adjustments have reshaped the dollar liquidity environment, changed how dealers manage reserves, and influenced large-scale capital flows that affect Bitcoin and the broader altcoin market. When the Fed signals it will buy securities or ease bank reserve requirements, dealers find it easier to intermediate large crypto transactions.
03 Altcoin Divergence
The altcoin market is showing clear signs of divergence. While most major tokens have pulled back, some altcoins have stood out with strong gains.
Gate trading platform data shows that after the Fed’s decision, DOPE tokens surged 135%, PSTAKE rose 30%, and PELL climbed 25%. These strong performances indicate that risk appetite has not completely disappeared.
In contrast, many altcoins saw even steeper declines as Bitcoin retreated. This divergence highlights selective investment strategies in the current market environment.
Analysts point out that projects with clear on-chain activity, revenue sources, or ties to real-world economic activity tend to attract capital inflows when financing costs decrease.
04 Market Sentiment Indicators
The Crypto Fear & Greed Index is currently at 29, placing it in the "Fear" category. Since October, the index has hovered between fear and extreme fear.
Several factors contribute to the subdued market sentiment: short-term liquidity changes, the Fed’s forward guidance, and broader macroeconomic uncertainty all impact investor risk appetite.
While rate cuts are theoretically positive for risk assets, when the market has already priced in these expectations, traders often use such events to take profits or reduce exposure.
On the other hand, the Fed’s decision to end quantitative tightening could help support a Bitcoin recovery. Any signals of renewed quantitative easing would further energize the market.
05 Investment Strategy Recommendations
For short-term trading, the current market environment calls for a cautious approach. Look for buying opportunities on pullbacks and set reasonable stop-loss and take-profit levels.
Bitcoin has key support around $90,708. If the price stabilizes at this level, it may present short-term trading opportunities. Similarly, Ethereum’s support near $3,243 warrants attention.
Investors should closely monitor real-time data on the Gate trading platform, especially the interplay between trading volume and price trends, as well as rotation opportunities in the altcoin market.
Outlook
The crypto market’s response to the Fed’s decision reflects a generally cautious stance among traders. After briefly touching $94,477, Bitcoin pulled back to around $91,012, showing the market is still digesting this long-anticipated policy shift.
As 2025 draws to a close, attention will turn to policy expectations for 2026 and the broader macroeconomic landscape. Ongoing institutional allocations to Bitcoin ETFs, the gradual improvement of regulatory frameworks, and rising mainstream acceptance of cryptocurrencies are structural factors likely to have a greater long-term impact than any single rate decision.
Regardless of short-term market swings, the trend of cryptocurrencies moving into financial mainstream appears increasingly irreversible.
