Crypto markets saw a modest lift after the US Federal Reserve made another move on rates, and traders are watching for a clearer follow-through. According to reports, the Fed has carried out three consecutive interest rate cuts totaling 0.75% from September to December. The move was widely expected. Still, market responses have been mixed and somewhat choppy.
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Fed Moves And Market Takeaway
According to CoinEx chief analyst Jeff Ko, much of the Fed’s action was already priced in, and the updated dot plot leaned a bit more hawkish than some had hoped.
Ko pointed to $40 billion in short-term Treasury purchases as a technical step to ease liquidity and lower short-term rates, not as a broad stimulus program.
Markets took the measures as mildly positive. US stocks rose, and that helped Bitcoin find some footing after an early dip.
Santiment And The Short-Term Reaction
Based on reports from onchain analytics firm Santiment, each cut has prompted a classic “buy the rumor, sell the news” move where initial optimism is followed by short selling.
🇺🇸 The US Fed made three strategic cuts over the past 3 months, resulting in a total of an 0.75% reduction to interest rates.
1⃣ September 17, 2025: Fed lowered the target range to 4.00 %–4.25 % (from 4.25 %+) at the 16–17 Sep meeting.
2⃣ October 29, 2025: Fed cut the rate to… pic.twitter.com/X6DWypvq5t
— Santiment (@santimentfeed) December 11, 2025
Cuts are seen as bullish for crypto over the long haul, yet they have triggered brief pullbacks in practice. Santiment adds that a small wave of FUD or retail selling often signals that the mild post-cut downswing is finished and a bounce may follow once things calm down.
Technical Levels Traders Are Watching
Bitcoin was volatile in the aftermath. It fell under $90,000 then popped to $93,500 on Coinbase before settling near $92,300 at the time of reporting. Key resistance sits between $97,000 and $108,000.
On the daily chart, BTC remains inside a small rising channel that sits within a larger downtrend, and technical traders note that a MACD histogram is approaching a positive crossover — a sign some see as possible renewed momentum.
ETF activity has been tepid, with only $219 million in net inflows since late November, which keeps some investors cautious.
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Dollar Weakness And Equity Signals
A weaker dollar has been part of the backdrop; the DXY index fell to 98.36 and is showing bearish momentum on its own MACD.
Nasdaq’s move back above its 50-, 100- and 200-day simple moving averages helped lift risk assets briefly, and that has supported Bitcoin’s rebound attempts.
Yet correlation with equities remains uneven — losses in stocks tend to hit Bitcoin harder than gains help it, creating an asymmetric risk profile for traders.
Featured image from Impossible Images, chart from TradingView