Federal Reserve’s Interest Rate Cut Sparks Mixed Reactions
The post Federal Reserve’s Interest Rate Cut Sparks Mixed Reactions appeared on BitcoinEthereumNews.com.
Key Points: Federal Reserve cuts interest rates by 25 basis points during December meeting. Analysts view the move as a cautious fiscal signal. Bitcoin’s market reaction lacked a significant Christmas rally boost. The Federal Reserve, chaired by Jerome Powell, adjusted its policy on December 10, 2025, by reducing the federal funds target range by 25 basis points to 3.50–3.75%. This cautious Fed move is seen as a signal, not a shift, affecting risk assets, including Bitcoin, due to its potential impact on liquidity and market sentiment. Fed’s 25 Basis Point Cut Amidst Economic Challenges The Federal Reserve’s recent decision to cut interest rates by 25 basis points was driven by moderating job gains and somewhat elevated inflation, signalling a cautious outlook. Chair Jerome Powell emphasized, “carefully evaluate… incoming data, the evolving outlook and the balance of risks” before deciding on additional changes. The adjustment has tightened speculation around future rate cuts, leaving investors pondering the landscape. Despite the rate cut’s attempt to signal caution, market volatility remains. Bitcoin did not experience a significant Christmas rally as some hoped, showing tempered enthusiasm among market participants. Analysts and industry leaders offered mixed reactions to the Fed’s adjustment. Nick Parklin from Coin Bureau noted the absence of expected hawkishness and its resultant unclear effects on risk assets. Timothy Misir of BRN Research remarked on institutional interest conflicting with continued retail selling pressure. Analysts and industry leaders offered mixed reactions to the Fed’s adjustment. Nick Parklin from Coin Bureau noted the absence of expected hawkishness and its resultant unclear effects on risk assets. Timothy Misir of BRN Research remarked on institutional interest conflicting with continued retail selling pressure. Bitcoin Faces Market Fluctuations as Price Drops 2.10% Did you know? The Federal Reserve’s cautious signaling mirrors its 2019 post-rate-cut behavior when it also aimed for…
