Bitcoin Nears $94K as Fed Cuts Rates and Signals Caution on Inflation and Labor Market
On December 10, 2025, Bitcoin traded around $93,716 and briefly topped $94,000 before retreating following Federal Reserve Chair Jerome Powell's post-meeting remarks. The Federal Reserve delivered a 25 basis-point rate cut, signaling a cautious approach to inflation while highlighting potential weakness in the labor market. Powell described monetary policy as data-dependent, reflecting uncertainties ahead.
As part of its new strategy, the New York Fed will begin purchasing about $40 billion of short-term Treasuries and those maturing up to three years over the next month, starting Friday. This initiative pauses the Fed's balance sheet runoff and marks a shift from the previous three years of runoff. Purchases are expected to remain elevated for several months.
Analysts expect only modest easing going forward, with two additional rate cuts unlikely before mid-2026. The Fed aims to keep the upper bound of rates around 3.25%, depending on incoming economic data. Within the Federal Open Market Committee, two members voted against the rate cut, favoring no change, underscoring a closely contested decision.
Bitcoin currently faces resistance around $94,500, with potential upward momentum possibly fueled by ETF inflows that could push the price toward and beyond $100,000. In related crypto market movements, Ether rose approximately 2.4% to around $3,398 during the same period.
