NewsBTC
Dec 12, 2025
2 0

Fed Cuts Rates by 0.75%, Bitcoin Volatile Amid Market Reactions

Crypto markets experienced a slight uplift following the US Federal Reserve's decision to implement three consecutive interest rate cuts totaling 0.75% from September to December.

Key Points

  • The Fed’s actions were largely anticipated by the market, leading to mixed and choppy responses.
  • CoinEx analyst Jeff Ko noted that these measures were more technical adjustments rather than broad stimulus initiatives.
  • US stock market gains provided some support for Bitcoin, which initially dipped but then stabilized.

Market Reactions

  • Santiment reported typical "buy the rumor, sell the news" behavior, with initial optimism followed by short selling.
  • The rate cuts are seen as long-term bullish for crypto, though they often cause temporary pullbacks.

Technical Analysis

  • Bitcoin fluctuated between $90,000 and $93,500, settling near $92,300.
  • Key resistance levels range from $97,000 to $108,000.
  • The MACD histogram on Bitcoin's daily chart suggests potential renewed momentum.
  • ETF activity remains subdued with $219 million in net inflows since late November.

Additional Market Factors

  • The DXY index showed bearish momentum, falling to 98.36.
  • Nasdaq’s recovery above key moving averages briefly supported risk assets, benefitting Bitcoin.
  • There is an uneven correlation with equities; stock losses impact Bitcoin more than gains assist it.