Bitcoin Nears $94,000 as Fed Delivers Third Rate Cut

Bitcoin rose to nearly $94,000 on December 10, 2025, gaining over 2.3% after the United States Federal Reserve cut its main interest rate by 25 basis points to a range of 3.50%–3.75%. The cut was the third this year, following a 50-basis-point cut in September and a 25-basis-point cut in October.

Fed Chair Jerome Powell called this a “hawkish cut” because inflation remains high. However, the commitment to adding liquidity increased investor interest in riskier assets, driving the total cryptocurrency market cap to $3.25 trillion.

Fed Balances Caution with Liquidity Support

The Fed has ended nearly three years of reducing its balance sheet and is now shifting gears to make it easier for banks to access money. Powell pointed out that future rate decisions will depend on economic data, noting that inflation remains above the 2% target and the job market is strong.

Despite a cautious tone, the plan to buy Treasury bills follows a $13.5 billion repo injection earlier in the week. It aims to prevent another liquidity crisis like the one that contributed to November’s sharp sell-off in risk assets, including Bitcoin’s drop below $90,000.

Bitcoin Reacts With Renewed Strength

After the Fed’s announcement, Bitcoin quickly rebounded, rising from $91,000 to nearly $94,000 within hours. Trading volume increased by 15% to $45 billion, and new investor activity in futures contracts confirmed a fresh wave of buying. Ethereum also performed well, rising 6.6% to above $3,300, while most other altcoins saw modest gains.

Analysts are now looking at $96,500 as an important resistance level. If Bitcoin breaks above this level, it could reach $100,000 before the end of the year. Long-term predictions range from $150,000 to $200,000, but they depend on continued monetary policy easing and clear regulations.

Meanwhile, Bitcoin has often reacted to adjustments in government policies in the U.S. For example, the apex coin surged above $106,000 for the first time in nearly a week on November 10 after the Senate reached an agreement to end a 7-week government shutdown that started on October 1. Ethereum rose 7% above $3,600, and XRP climbed 6% toward $2.30 as trading volumes increased.

However, there are still risks in the short term if Powell signals a pause on rate cuts in 2026 or if unexpected events occur. For now, the Fed’s policy change has boosted positive sentiment and positioned Bitcoin as a key beneficiary of increased global liquidity.

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