Federal Reserve Cuts Rates by 25bps for Third Time in 2025 Amid Mixed Market Reactions
On December 10, 2025, the Federal Reserve cut interest rates by 25 basis points for the third time this year, with nine of the 12 FOMC members backing the decision. The median projection of the committee indicates only one additional rate cut is expected in 2026. Alongside the rate cut, the Fed announced it will begin purchasing US Treasury Bills starting December 12, committing to buy $40 billion worth of Treasuries.
Market reactions were mixed. Futures imply about a 78% chance that rates will remain unchanged at the next Federal Reserve meeting. In early Asian trading, Bitcoin fell approximately 2%, trading around $90,121, while Ether stood at $3,224 and XRP at $2.01. The total cryptocurrency market capitalization declined by 2.4% to $3.16 trillion.
Equity markets in Greater China showed divergent trends: Shanghai Composite Index was down 0.18%, whereas Hong Kong's Hang Seng Index rose by 0.4%. US technology sector sentiment softened, with Nasdaq 100 futures falling roughly 0.3% following reports from Oracle, and shares of Nvidia edging lower.
Overall, the Fed's rate cut was milder than some had anticipated, suggesting a tighter policy path ahead and signaling limited near-term catalysts for the cryptocurrency market.
