Bitcoin News Today: Bitcoin Surges Past $92K on Fed Rate Cut and Balance Sheet Expansion

The Federal Reserve delivered its long-anticipated rate cut on December 10, 2025, lowering the federal funds rate by 25 basis points to a range of 3.5%–3.75%. Futures markets had priced in this move with an 87% probability, and the decision came as labor data showed a slowing job market and weaker ADP employment figures. Bitcoin (BTC-USD) responded by rising to $92,640 during the session, with $84 billion in 24-hour trading volume and a 1.79% gain on the day according to market data.

The rate cut was accompanied by a new round of liquidity injections as the Fed announced it would begin buying $40 billion in short-term Treasury bills starting December 12, a reversal from its prior quantitative tightening (QT) strategy. This marks the end of a two-year effort to reduce the Fed's balance sheet and is aimed at stabilizing market reserves. The move has been interpreted as a dovish signal, particularly as it follows the Fed's decision to stop shrinking its balance sheet at the start of December.

Bitcoin's technical outlook has shown signs of strength as it moved above $93,000 in the days leading up to the FOMC meeting. On-chain data suggests low selling pressure and a strong institutional buying bias, with key resistance levels forming around $95,000–$98,000. Analysts have highlighted that reclaiming this range could set the stage for a push toward $100,000 and beyond. However, caution remains, as the RSI hovers near 56 on the 4-hour chart and stochastic indicators signal early exhaustion.

Market Reactions and Volatility

Bitcoin's price action has been volatile in the lead-up to the Fed's decision. The cryptocurrency dropped from $94,000 to $88,000 within hours on one session, triggering $500 million in liquidations, $420 million of which were long positions. Over 140,000 traders were liquidated globally in 24 hours, reflecting the fragility of leveraged positions in the market. Despite this, the broader crypto market has shown resilience, with Bitcoin's dominance rising to 54.6% and Ethereum surging 6.5% to above $3,300.

The total crypto market cap briefly dipped $80 billion to $3.1 trillion amid the volatility, but this was partly offset by a broader risk-on sentiment following the Fed's dovish signal. Altcoins like Solana, Dogecoin, and Ripple also saw gains, with Solana rising 7% and Dogecoin up 6.4%.

Policy Uncertainty and Forward Guidance

The Fed's forward guidance following the rate cut remains a critical factor for Bitcoin and other risk assets. While the rate reduction was expected, the language used by Chair Jerome Powell and the updated dot plot will shape expectations for future cuts. Market participants are particularly focused on whether the Fed will commit to a more aggressive easing path in early 2026.

Options data from Deribit shows a concentration of bearish bets at the $89,000 strike price, suggesting traders are hedging against a potential pullback. This aligns with the mixed sentiment among analysts, who point to the potential for a correction if Powell signals caution or a slower pace of rate cuts.

Institutional and Regulatory Developments

Institutional interest in Bitcoin has continued to build, supported by regulatory developments and improved market access. SEC Chair Paul Atkins announced plans for a new "innovation exemption" to modernize the digital asset framework, which is expected to improve clarity for crypto issuance and trading. In a notable move, Vanguard Group recently allowed crypto ETF and mutual fund trading on its platform, expanding access for millions of investors.

Mining activity and on-chain metrics also offer a mixed picture. Mining difficulty is projected to rise on December 11, which could pressure mid-tier miners if Bitcoin fails to reclaim $95,000. However, the network's hashrate remains above 600 EH/s, and the MVRV ratio of 1.68 suggests Bitcoin remains undervalued relative to historical bull-market averages.

Looking Ahead

The Fed's decision marks a pivotal moment for the U.S. economy and global financial markets. While the immediate impact has been bullish for Bitcoin and other risk assets, the true test will come in early 2026. Investors are now watching for further liquidity injections, potential balance-sheet expansions, and the selection of a new Fed chair—likely Kevin Hassett or another Trump-aligned candidate—as these will shape monetary policy for years to come.

Bitcoin faces key technical levels in the $93,000–$95,000 range, with institutional liquidity pockets and accumulation clusters providing support. A break above $95,000 could trigger a rally toward $100,000 and beyond, while a pullback toward $88,000 or lower may test deeper support levels.