The crypto market extended its losses as Bitcoin once again dipped below the $90,000 mark, after the U.S. Federal Reserve delivered its third consecutive 25 basis-point rate cut to close out 2025.
During early Asian trading hours, Bitcoin retreated after the Jerome Powell–led Federal Open Market Committee (FOMC) announced another reduction in the benchmark interest rate. This December cut marked the third straight 25bps reduction since September, bringing total rate cuts for 2025 to 75bps after the Fed held rates unchanged throughout 2024.
Crypto analyst Ali Martinez warned that Bitcoin was vulnerable to a deeper pullback following the latest FOMC decision. Martinez highlighted that BTC has historically reacted negatively to FOMC meetings in 2025, noting that six out of seven meetings this year have triggered market corrections.
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Bitcoin had surged to as high as $94,500 ahead of Wednesday’s announcement, as traders priced in a near-certain rate cut. CME FedWatch data reflected a 90% probability of a 25bps reduction, while a CryptoQuant report emphasized that previous cuts this year became classic “sell-the-news” events—an outcome that appeared to be unfolding once again.
Market data from BeInCrypto showed that December has brought sharp volatility for the world’s largest cryptocurrency. This comes after two consecutive months of losses, including November’s steepest monthly decline of the year.
At the time of writing, Bitcoin was trading at $90,148, down 2.7% in the past 24 hours. The decline underscores ongoing selling pressure that fresh capital has yet to counter. Analysts noted that recent rebounds have been driven less by strong buying activity and more by a temporary easing of sell-side momentum. According to market watcher Darkfost, Bitcoin needs an influx of new liquidity before a genuine bullish reversal can begin.
Some analysts have also pointed to market manipulation as a factor behind the recent downturn. Crypto analyst Bull Theory argued that Wall Street trading desks, particularly Jane Street, have contributed to Bitcoin’s sudden crashes.
The analyst highlighted repeated patterns where BTC erased up to 16 hours of gains within minutes after the U.S. market opened. This behavior has reportedly persisted since November, when Bitcoin first dropped below the $100,000 threshold, and similar trends were observed earlier in the year.
Despite favorable macroeconomic conditions, Bitcoin continues to face a challenging environment governed by weak sentiment, persistent sell-offs, and institutional trading pressure.
Bitcoin enters the final stretch of 2025 under mounting pressure, with its failure to hold above $90,000 signaling weakening market confidence despite supportive macroeconomic developments like the latest U.S. Federal Reserve rate cut. The repeated “sell-the-news” reactions to all three rate cuts this year highlight a market still dominated by cautious sentiment rather than risk appetite.
In the near term, BTC is likely to face continued volatility as traders react to macro signals, liquidity conditions, and institutional trading patterns. With Wall Street desks reportedly triggering sharp intraday reversals, thin liquidity during key trading windows could worsen price swings.
If macroeconomic conditions continue to ease—through lower rates, improving risk sentiment, or renewed institutional interest—Bitcoin could find a stronger footing heading into early 2026. However, without a clear shift in liquidity and sentiment, the market remains vulnerable to additional downside tests, particularly around key support levels near $88,000 and $85,000.
Overall, Bitcoin’s outlook is cautiously bearish in the short term but carries the potential for a recovery once new capital re-enters the ecosystem and the effects of the Fed’s policy easing begin to filter through risk markets.