Ethereum traded in a choppy range of $3,340 to $3,440.
Bitcoin News
Bitcoin and Ethereum experienced sharp price swings Wednesday following the Federal Reserve's quarter-point rate cut paired with cautious language about future monetary easing.
The Federal Open Market Committee reduced the federal funds rate to 3.5%-3.75% in a 9-3 split vote. Two regional presidents opposed the reduction, while Fed Governor Stephen Miran advocated for a deeper 50-basis-point move. Markets initially reacted positively but retreated as traders processed the language the Fed typically uses before pausing rate cuts, including a pledge to assess incoming data carefully.
Bitcoin whipsawed between $93,200 and $91,700 during the session. Ethereum traded in a choppy range of $3,340 to $3,440. Other major cryptocurrencies, including Solana, XRP, and BNB, followed similar trading patterns. Despite the Fed's cautious tone, the CME FedWatch tool now shows a nearly 40% probability of another quarter-point cut by the March meeting.
The Fed announced it will restart Treasury bill purchases, beginning with $40 billion in bills on Dec. 12. Fed watchers often refer to this type of reserve-management buying as "QE-lite," echoing the central bank's bill-purchase program in late 2019. The move adds liquidity to the system while the Fed manages reserve levels.
CryptoQuant analysts said Bitcoin's rally could extend toward $112,000 if the Fed turns more decisively dovish and Bitcoin breaks key resistance levels at $99,000 and $102,000. Julio Moreno, CryptoQuant's head of research, told The Block that the upside case depends on how quickly the Fed signals it will cut next year and what it projects for inflation. The pause-style language may complicate that scenario, traders said.
Nic Puckrin, investment analyst and co-founder of The Coin Bureau, said the FOMC decision was not as hawkish as many market participants expected. Markets are breathing a sigh of relief, he said. The initial reaction in cryptocurrency and equities reflected relief at the Fed's tone, though projections showing only one rate cut next year are tempering optimism.
Diverging opinions within the committee are injecting fresh uncertainty into the macro outlook, Puckrin added. Traders are already shifting expectations, with futures markets pricing a nearly 40% chance of another cut by March despite the Fed's cautious tone. Analysts said mixed Fed signals could limit risk-asset upside into year-end as markets digest the split vote and cautious forward guidance from policymakers.
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