On December 12, 2025, the latest cryptocurrency dynamics and U.S. macroeconomic news revolve around the market's reaction to the Federal Reserve's interest rate cuts. The key points are as follows:
⚡️ Overview of core dynamics throughout the day
· Cryptocurrency performance: Bitcoin prices have fluctuated dramatically, briefly falling below $92,000 and then recovering to briefly surpass $93,000. The market has generally seen a decline.
· Key macro data: The number of initial unemployment claims in the U.S. surged to 236,000 last week, marking the largest weekly increase since March 2020.
· Federal Reserve policy: The Federal Reserve announced on December 10 its third interest rate cut of the year, lowering the target range for the federal funds rate to 3.50%-3.75%.
· US stock market response: The US stock market shows differentiation, with the Dow Jones Index soaring 1.34% to a historical high, while the Nasdaq Index fell by 0.25%.
📉 Cryptocurrency market dynamics
· Interest rate cuts trigger 'de-leveraging': The recent market volatility is directly related to the Federal Reserve's interest rate cut. Following the rate cut, concerns about uncertainties in future policy led traders to exit risk assets, triggering large-scale clearance of leveraged positions. According to statistics, within hours of the rate decision, approximately $440 million worth of cryptocurrency derivative positions were liquidated.
· The market generally believes that the current decline is more about short-term leverage clearance and technical adjustments, rather than a long-term structural weakening. Institutional funds continue to flow into spot Bitcoin ETFs, and the exchange's Bitcoin supply has dropped to multi-month lows, both viewed as positive support factors for the market.
📊 US macroeconomic and policy highlights
The latest US employment data and Federal Reserve policies are key factors affecting global markets.
· The labor market is showing clear signs of cooling: According to data from the US Department of Labor, in the week ending December 6, initial jobless claims surged by 44,000 to 236,000, far exceeding market expectations. This data corroborates Federal Reserve Chairman Powell's warning about the 'significant downside risks' facing the labor market.
· The Federal Reserve announces its third interest rate cut: At the meeting on December 10, the Federal Reserve announced a rate cut of 25 basis points as expected, marking the third consecutive cut since September this year. This move aims to address the slowing labor market.
· Internal dissent expands: The voting result of this interest rate decision was 9 to 3, with three dissenting votes. The points of contention lie in the fact that some board members support a larger rate cut, while two regional Fed presidents believe that cutting rates is not a guarantee for solving current economic problems. This indicates significant differences in the Federal Reserve's internal judgments on future paths amid political pressure and economic realities.
📈 Traditional financial market response
Macroeconomic events have triggered a repricing across asset classes, leading to noticeable differentiation in traditional market performance.
· The stock market experiences a stark contrast: Market funds show significant rotation. The Dow Jones Industrial Average benefited from the rise of cyclical and value stocks, soaring 646 points (1.34%), reaching a new historical high. However, the tech-heavy Nasdaq Composite Index fell by 0.25%. The weakness in tech stocks was mainly due to Oracle's earnings report falling short of expectations, causing the company's stock to plummet over 10%, which also negatively impacted other AI concept stocks like Nvidia.
· The US dollar and Treasury yields decline: Influenced by interest rate cuts and weak employment data, the dollar index continues its downward trend. At the same time, the benchmark 10-year US Treasury yield has also decreased.
💎 Key points summary
In simple terms, the main theme of today's market is 'the complex game after expectations are fulfilled':
1. Expectations materialize: The Federal Reserve's interest rate cut has already been priced in by the market and is no longer seen as a simple positive.
2. Concerns emerge: Weak employment data validates economic risks, while internal divisions within the Federal Reserve and uncertainties about future policy space have raised concerns among investors.
3. Capital rotation: Funds are flowing out of overvalued tech stocks and highly volatile cryptocurrencies, partially shifting towards traditional cyclical stocks, leading to significant market differentiation.
4. Short-term pain: The cryptocurrency market has experienced severe short-term liquidations and price volatility due to its high leverage characteristics in the face of uncertainty.
