Bitcoin and Ether Swing as Fed Cuts Rates but Signals Caution on What Comes Next

Bitcoin and ether bounced in a tight and choppy range on Wednesday after the Federal Reserve trimmed interest rates by a quarter point but made clear it’s in no rush to ease further.

Federal Reserve issues FOMC statement

Available indicators suggest that economic activity has been expanding at a moderate pace. Job gains have slowed this year, and the unemployment rate has edged

Board of Governors of the Federal Reserve System

The Federal Open Market Committee voted 9–3 to lower the federal funds rate to 3.5%–3.75%. Two regional Fed presidents opposed the move, while Governor Stephen Miran pushed for a larger half-point cut. Markets initially welcomed the decision, but the mood shifted as traders absorbed the Fed’s language about “carefully assessing incoming data” before making any additional adjustments. That phrasing has often appeared before the central bank pauses.

Even so, futures markets still see room for more easing. The CME FedWatch tool now shows close to a 40% chance of another quarter-point cut by March.

Crypto markets reflected that uncertainty. Bitcoin flipped between roughly $93,200 and $91,700, while ether traded between $3,340 and $3,440. Solana, XRP, and BNB followed similar patterns, with quick swings in both directions.

Volatility picked up further after the Fed said it will restart Treasury bill purchases, beginning with $40 billion on December 12. While the central bank framed this as routine reserve management, analysts often call it “QE-lite,” drawing comparisons to a similar program in 2019.

Divided Fed approves third rate cut this year, sees slower pace ahead

The Federal Reserve on Wednesday made its final final interest rate move of the year.

CNBCJeff Cox

Some crypto researchers say a clearer shift toward easier policy could unlock more gains. CryptoQuant analysts estimate bitcoin could push toward $112,000 if rate cuts accelerate and BTC breaks past resistance levels at $99,000 and $102,000. Julio Moreno, the firm’s head of research, said the outlook depends not only on the cuts themselves but on how quickly the Fed signals its plans for next year and how inflation evolves. The Fed’s careful language, he noted, may make that path less straightforward.

Other analysts viewed Wednesday’s announcement as less hawkish than expected but still a source of uncertainty. Nic Puckrin, an investment analyst and co-founder of The Coin Bureau, said the initial reaction in bitcoin and equities showed relief, though the Fed’s projection of only one rate cut next year is more limited than many investors hoped. That, combined with disagreement inside the committee, leaves markets waiting for clarity.