Bitcoin News Today: Fed Cuts Rates 25 BPS, Crypto Markets Weigh Institutional BTC Moves

As the Federal Open Market Committee (FOMC) meeting wrapped up on December 10, 2025, the financial and crypto markets braced for the Fed's decision. A 25-basis-point rate cut brought the federal funds target range to 3.50%–3.75%, aligning with market expectations. The move marked the third consecutive cut this year, signaling a dovish shift in monetary policy.

Chair Jerome Powell's press conference added nuance to the decision, as he hinted at the potential for a slower pace of quantitative tightening. This language eased some bearish concerns in the market, even though volatility remained high ahead of the announcement. Analysts and traders now closely watch for how these signals translate into broader economic and crypto market movements according to market analysis.

In the cryptocurrency space, major players and institutional investors moved significant sums before the Fed's decision. BlackRock deposited 2,196 BTC valued at around $202.76 million to Coinbase, signaling strategic positioning. Meanwhile, Galaxy Digital sent 900 BTC ($81.59M) to a newly created wallet, suggesting further accumulation or reallocation of Bitcoin assets.

Market Reactions and Institutional Moves

The Fed's rate cut and Powell's remarks sent mixed signals to the crypto market. While Bitcoin initially rose following the announcement, it faced consolidation near $90,500, as traders awaited further guidance. . Ethereum, which was trading around $3,100, saw moderate gains, though it remained below key resistance levels. The broader crypto market, however, remained volatile, with over $1 billion in open positions at risk of liquidation, depending on the Fed's direction.

Institutional actions further complicated the market's response. BlackRock's recent deposit of 1,385 BTC and 799 ETH to Coinbase Prime underscored growing institutional interest in Bitcoin and Ethereum. These transfers often correlate with increased liquidity, which can support price stability and attract additional capital inflows.

What Analysts Are Watching

Analysts emphasized the importance of Powell's statements and the updated dot plot projections. The dot plot is expected to show a projected three to four additional rate cuts in 2026, which could further support risk assets. If the Fed's guidance leans toward a slower pace of tightening or hints at fresh liquidity injections, Bitcoin and Ethereum could see renewed bullish momentum.

Another critical factor is the broader economic environment. While a rate cut is generally seen as bullish for crypto, the Fed's decision to pause or adopt a more hawkish stance could trigger a "Santa Dump," a term used to describe a year-end market sell-off. Recent data such as higher-than-expected job openings and elevated inflation levels already suggest some caution. These factors could temper the market's enthusiasm, even in the face of a rate cut.

Risks to the Outlook

Despite the Fed's dovish signal, risks remain. The potential for a rate hold, though currently seen as unlikely, could disrupt market expectations and lead to sharp corrections. Additionally, if Powell's remarks hint at a more cautious policy path, the positive impact on crypto could be short-lived.

On the institutional side, large Bitcoin transfers to exchanges have historically been followed by price corrections. For example, BlackRock's $202.76 million BTC deposit might be a sign of accumulation or a precursor to selling. Traders and investors must monitor on-chain metrics like transfer volumes and whale activity to gauge true market sentiment according to analysts.

What This Means for Investors

For investors, the FOMC meeting and related institutional flows present both opportunities and risks. A dovish Fed could drive liquidity into risk assets like Bitcoin and Ethereum, supporting higher prices. However, volatility remains a key challenge, with sharp swings expected around major macroeconomic events. Institutional activity, while bullish, also introduces the risk of sudden sell-offs if reallocation strategies trigger increased exchange activity.

Traders are advised to watch key support and resistance levels, particularly for Bitcoin around $85,000 and $95,000. Ethereum's price could find support near $3,000 and face resistance at $3,200, depending on the broader market's response to the Fed's guidance. Diversification across crypto pairs and the use of stop-loss orders can help mitigate risks in this high-volatility environment.

The FOMC meeting and related developments underscore the growing convergence between traditional finance and the crypto market. As institutional participation increases, market reactions to central bank policies become even more pronounced, requiring investors to stay informed and agile.