The crypto market reacted in a measured but constructive manner on December 10 after the Federal Reserve’s decision lower interest rates by 25 basis points.
Also as chairman Jerome Powell’s press conferenceHe acknowledged the increasing risks for the labor market and signaled a data-dependent easing in the future.
For major assets like Bitcoin and Ethereum, price action remained orderly – neither euphoric nor risky – suggesting traders are still wondering whether this cut marks the start of a broader easing cycle.
The market capitalization of cryptographies increases after the decision
The total crypto market cap rose gradually after the statement. After Powell’s comments, yields accelerated slightly and recovered toward $3.26 trillion.
This reflects a typical early-stage post-FOMC response: capital rotates cautiously into risky assets, but without confirmation of multiple future cuts, traders remain selective.
The Altcoin market is also ticking upward
Altcoins saw similar behavior: initial hesitation, followed by a late-session surge. The market cap for altcoins returned to around $1.46 trillion, reflecting improved sentiment, but not an aggressive increase.
This is consistent with Powell’s cautious tone: the Fed cut rates, but emphasized uncertainty and data dependence. It appears that traders are pricing in an easing, but are not fully committed to it.
Bitcoin stabilizes above $92,000 amid rising RSI
BTC fell shortly after the statement, but recovered at the end to trade around $92,297. The RSI has risen towards neutral-bullish territory [around 49–50]This suggests that momentum is slowly improving, but not yet trending strongly.
Source: TradingView
Two factors seem to support the price:
- The Fed Recognizes Downside Employment Risks – A Historically Bullish Macro Signal for BTC.
- The market expects that there may be further cuts if working conditions continue to weaken.
However, BTC has not broken through its short-term resistance, reflecting the reluctance of traders waiting for more clarity.
Ethereum performs slightly better with a cleaner upside structure
ETH reacted more decisively than Bitcoin, closing the day around $3,335. The RSI has risen towards 58, indicating strengthening bullish momentum.
Source: TradingView
ETH continues to benefit from:
- Expectations of higher beta performance as liquidity improves
- Renewed accumulation of whales observed earlier this week
- Stronger technical recovery structure compared to BTC
If liquidity increases in January, ETH could become the higher volatility macro trade.
Market information: constructive, but cautious optimism
Overall, the market reaction can be summarized as follows:
- Positive but measured response to the Fed’s first rate cut.
- The market cap of cryptocurrencies and altcoins rose higher, but not impulsively.
- BTC stabilized, ETH showed early strength.
- Traders appear to be waiting for confirmation on whether this is a one-off cut or the start of an easing cycle in 2026.
If upcoming labor and inflation data prompt the Fed to consider additional cuts, crypto could see a stronger, macro-driven rally. For the time being, sentiment is improving, but it is not euphoric.
Final thoughts
- The market’s reaction to the Fed’s first rate cut was steady rather than explosive, showing that traders welcome easing.
- Bitcoin and Ethereum maintained their gains after the FOMC meeting, and broader market caps rose, reflecting cautious optimism.