Crypto fails to cheer Fed rate cut; BTC dips below $93k, ETH slips to $3.2k

Cryptocurrency markets showed little enthusiasm for the US Federal Reserve’s latest rate cut, with flagship tokens Bitcoin and Ethereum continuing to trade lower on Thursday. 

 

Earlier on Wednesday, December 10, Federal Reserve Chair Jerome Powell announced a quarter-point reduction in the key interest rate, the third consecutive cut, and signaled that rates may remain unchanged in the coming months. The move brought the benchmark rate down to roughly 3.6 per cent, its lowest level in nearly three years. While equities briefly rallied, the momentum failed to carry over to digital assets.

 

Altcoins tracked Bitcoin’s decline. Select narratives, including Hyperlink and Monero, posted only limited upside and absorbed the modest amount of risk capital available.

 

At the time of writing, Bitcoin was trading at $92,662, down 2.76 per cent over the past 24 hours, on a trading volume of $70.48 billion. The token moved between $89,459 and $94,477 during the session, according to CoinMarketCap. Ethereum mirrored the trend, losing about 3.56 per cent to trade at $3,200, with 24-hour volumes at $34 billion after fluctuating between $3,170 and $3,446.

Rate cut brings mixed sentiment

Market analysts described the development as a mixed catalyst rather than a clear reflationary push, pointing to policymakers’ cautious stance as Powell paired a dovish message with hawkish inflation concerns.

 

“The Fed’s 25 bps cut is a mixed catalyst rather than a clean reflationary shove. Policymakers signalled caution: two votes against easing, one for a 50 bps move, and Fed Chair Powell’s press conference threaded a dovish message with hawkish inflation concern,” said Vikram Subburaj, CEO of Giottus.

 

He added that the intraday spike above $94,400 and the quick retreat toward the low $90,000 indicated a market willing to rally on headlines but lacking depth. Bid-ask liquidity, spot CVD, and on-chain activity remained weak. The rally since late November has been spot-led, with open interest and leverage sliding. “This means the move up is real but shallow. Until concentrated short pressure around the $94,500 zone is absorbed and ETF flows shift from sporadic to sustained, expect BTC to oscillate below the $100K threshold rather than run away,” he said.

 

With BTC range bound, smaller catalyst-driven tokens may outperform temporarily. But the same structural headwinds persist, including thin order books, defensive derivatives positioning, and inconsistent ETF behaviour. “So, any alt-season will likely be episodic and event-driven rather than a sustained rotation unless spot demand and institutional inflows broaden significantly,” Subburaj noted.

Technical view

Actionable levels for investors, Subburaj said, are dips toward the $90,000 zone for staggered entries and a confirmed close above $94,500 before expecting follow-through on the upside. “Keep leverage minimal until ETF demand turns consistently positive,” he advised.

 

From a technical standpoint, Riya Sehgal, research analyst at Delta Exchange, said BTC’s failure to reclaim $94,000 reflected fading bullish strength. “Bitcoin’s support lies at $89,500 to $87,500. ETH’s break below the $3,240 trendline support raises the risk of a slide toward $3,150,” she said.

 

That said, the regulatory sentiment also remained mixed. The OCC found that nine major U.S. banks, including JPMorgan and Citi, restricted crypto businesses from 2020 to 2023, potentially triggering a Justice Department review. Japan’s FSA proposed shifting crypto oversight from payments to securities law, acknowledging the investment nature of digital assets. Meanwhile, MicroStrategy opposed MSCI’s plan to drop crypto-heavy firms from indexes, calling the move discriminatory.

 

In a positive development, Gemini secured CFTC approval to launch a prediction market, marking another step toward broader institutional acceptance of crypto-linked derivatives.