🔥Today, December 10, 2025, the Federal Reserve (FED) concluded its FOMC meeting with an interest rate cut of 25 basis points (0.25%), lowering the target range of the federal funds rate to 3.5%-3.75%.
What to expect in the short term (next days/weeks)?
Initial volatility: The market had already "priced in" the cut, so we saw an immediate dip in BTC (around $92k) and alts like ETH, SOL, and ADA dropping 1-2%. This is classic: "sell the news". But if Powell's speech (which has already occurred) is interpreted as dovish (less emphasis on inflation and more on weak employment), there could be a quick rebound of 5-10% in BTC towards $95k-$100k.
Correction risk: If the focus on "elevated" inflation (still above 2%) weighs more, a test of supports at $90k or even $85k for BTC is not ruled out, as some analysts warn. On X, there are traders talking about a "fakeout" post-announcement, with alts suffering more due to ETF outflows (already $5.2B in outflows since October).
What to expect in the medium/long term (2026)?
Liquidity as a driver: That $40B in purchases is key. Historically, more liquidity (as in QE cycles) drives risk-on assets like crypto, causing money to flow from bonds/cash to BTC and alts. We could see BTC retest $100k-$120k in Q1 2026, according to projections from Standard Chartered and analysts like Michaël van de Poppe. ETH could rise 6-7% initially, benefiting from a low-rate environment.
Bullish macro: Continuous cuts (though slower) + possible new pro-crypto chair under Trump + pending ETF approvals = strong tailwinds. Crypto is already more "traditional" (correlated with stocks and AI), so if the S&P500 rises with this liquidity, BTC follows. But watch out for global inflation or Trump tariffs, which could halt the rally.
In summary: Short term = volatility, but use the dips to accumulate (BTC at $90k is a good spot). Long term = bullish due to liquidity, but monitor inflation and the next FOMC in January.
#BTCVSGOLD #Fed #USChinaDeal #bitcoin
