FOMC Update — What It Means for Crypto (Dec 10, 2025)
Today the FOMC cut its benchmark interest rate by 25 basis points — the third straight reduction in 2025 — bringing the target range to 3.50%–3.75%.
The committee also signaled that future cuts will likely be more cautious, setting a higher bar before further easing.
Why This Matters for Crypto:
The FOMC’s monetary-policy decisions ripple through global markets, including digital assets.
Lower interest rates tend to weaken the dollar and increase liquidity — conditions that often make risk assets like crypto more attractive.
As risk-on sentiment rises, traders often reallocates capital from traditional assets (bonds, savings) into higher-reward — but higher-risk — assets such as Bitcoin (BTC), Ethereum (ETH) and other altcoins.
Possible Scenarios Ahead:
We could see a short-to-medium term uptick in crypto prices as investors chase yield and liquidity improves.
However: FOMC’s cautious tone — hinting at limited future cuts — could temper enthusiasm. Without fresh bullish catalysts, crypto may remain volatile.
Long-term growth will likely depend more on institutional adoption, macroeconomic data (inflation, growth), and global monetary conditions — not just rate cuts.
