Bitcoin drops to $90K after a cautious Fed rate cut; steady ETF inflows and easing on-chain selling shape market sentiment now.
Bitcoin pulled back toward $90,000 after the Federal Reserve cut interest rates by 25 basis points and paired the move with guidance that traders viewed as cautious.
Market participants waited for clearer signals of easier policy, yet the Fed’s tone created fresh doubt and held back hype across risk assets.
Notably, the drop in price came after a brief climb before the meeting.
Bitcoin slips after the Fed’s cautious tone
Bitcoin rose toward $94,500 ahead of the Fed meeting. Traders expected the rate decision and hoped for supportive commentary; however, the move faded once Chair Jerome Powell delivered the press conference.
Powell’s tone created pressure across crypto and stocks. Bitcoin then slipped back toward the $90,000 mark and stayed weak through the session.
Ether traded under $3,200 and many altcoins saw losses.
Price data from multiple platforms showed reduced strength across most major assets and this seems to be a continuation of a pattern from the year, since several prior Fed meetings also triggered declines.
Fed cut generates uncertainty
Powell described the policy rate as near neutral territory and pointed to cooling in the labour market.
He also stressed that future moves rely on incoming data and noted lingering risks for both unemployment and inflation. Notably, the Fed kept its forecast of only one rate cut for 2026.
The committee delivered a 9 to 3 vote. This marked the largest set of dissents since 2018. The mix of views showed how unsettled the committee remains and analysts said the message sounded cautious rather than supportive.
Multiple market researchers argued that the move looked like a small step rather than a strong move toward easier policy. They pointed out that the Fed raised its growth outlook and lowered inflation estimates.
Still, the message set a high bar for further cuts.
Several analysts said the tone added fresh doubt for traders who hoped for smoother trading.
Fed adds T-bill purchases
The Fed also said it will buy $40 billion in Treasury bills over thirty days, starting December 12. Officials said this move will help maintain ample reserves and added that it should not be viewed as quantitative easing.
Even so, analysts noted that these purchases may add a mild source of liquidity to markets.
The Fed says it will buy $40B worth of Treasury bills in the next 30 days, starting Dec. 12th
When the Fed buys T-bills, it injects liquidity back into the system.
This is the beginning of a stealth QE
That money printer is just getting warmed up. pic.twitter.com/DVbTmJavQE
— Lark Davis (@TheCryptoLark) December 10, 2025
Some market watchers said the combination of a neutral policy stance and short-term reserve support may help crypto early next year.
Others warned that the upcoming rotation of voting members at the Fed could tip the scales toward a more cautious stance. This could limit the chance of stronger easing early next year.
Related Reading: Bitcoin Holds $90K as FOMO Grows But Fed Threatens to Derail Rally
ETF inflows stay steady but conviction stays thin
Spot bitcoin ETFs saw inflows of more than $220 million on Tuesday. BlackRock’s IBIT led the group while Ethereum products gained over $57 million and Solana/XRP funds added about $15 million combined.
The steady inflow showed ongoing institutional demand.
Even with this support, price action stayed muted. Analysts said traders welcomed the rate cut but reacted to the guidance. They described the move as another example of a “hawkish cut” where policy changes look mild rather than supportive.
Research from several firms pointed to solid activity from large wallets. Addresses that hold between 10 and 10,000 bitcoin have added more than 42,000 bitcoin since December 1.
Retail holders have also continued trimming exposure. This has created a push and pull effect where strong buyers met steady selling from smaller holders.
