The world's two largest cryptocurrencies — Bitcoin and Ethereum — declined by up to 3% after the US Federal Reserve struck a cautious tone, pointing to rising inflation risks and weakening employment. This tempered expectations of sharp rate cuts going forward.
On Thursday, December 11, Bitcoin was trading at $90,154, while Ethereum stood at $3,193. Over the last 24 hours, Bitcoin lost 2.68% and Ethereum 3.53%.
Several major altcoins — including XRP, BNB, Solana, Tron, Dogecoin, Cardano, and Hyperliquid — also posted losses of more than 7% during the same period. As per CoinMarketCap data, the overall global crypto market capitalisation dipped 2.88% to $3.06 trillion.
“Bitcoin and major altcoins slipped as traders digested the US Federal Reserve’s third consecutive 25 bps rate cut of 2025 and a cautious macro outlook. The move, while briefly lifting equities, failed to sustain crypto momentum. Bitcoin fell 2.8% to $89,900, and Ether dropped nearly 3.6% to $3,188. Fed Chair Jerome Powell’s mixed guidance, signalling limited room for further easing, kept risk appetite muted,” said Riya Sehgal, Research Analyst, Delta Exchange.
The Jerome Powell–led US Federal Reserve’s FOMC announced a 25-basis-point reduction in its benchmark interest rate on Wednesday, December 10.
With this move, the Fed lowered the policy rate to a range of 3.50%–3.75%, implementing the quarter-point cut against the backdrop of persistent inflation pressures and a softening labour market in the US economy.
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According to Sehgal, BTC’s failure to reclaim $94,000 shows fading bullish strength, with support at $89,500–$87,500. ETH’s break below $3,240 trendline support raises the risk of a slide toward $3,150.
Meanwhile, Nischal Shetty, Founder, WazirX, believes that Bitcoin is positioned for upward pressure driven by easier liquidity, renewed risk appetite, and a softer dollar.
“However, its short-term movements remain tightly bound to macro signals and shifting rate expectations. Volatility will persist, yet the current environment leans toward renewed upside momentum for Bitcoin as global liquidity improves,” said Shetty.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
