Fed Cuts Interest Rates Amid Market Uncertainty
The US Federal Reserve cut interest rates by 25 basis points on Wednesday. This marks the third straight rate cut. The new range is 3.50% to 3.75% after the December meeting.
The Federal Open Market Committee voted 9-3 for the cut. One member wanted a bigger cut of 50 basis points. Two others preferred no rate cuts. Policymakers expect only one more 25 basis point rate cut in 2026 and another in 2027.
Following the decision, Fed Chair Jerome Powell said the agency will take a wait-and-see approach in 2026. He ruled out any immediate rate hikes. Powell also warned about risks in the labor market and high inflation.
Bitcoin, Ethereum, and XRP Prices Drop
The Fed’s cautious outlook triggered crypto price drops. Bitcoin fell below $90,000, losing more than 3%.
Ethereum dropped over 4% to under $3,200. XRP also fell more than 4%, struggling to stay above $2.00.
Market Liquidations Hit $440 Million
- Long position liquidations: $334.8 million
- Short position liquidations: $105 million
- Total liquidations in 12 hours: $440.2 million
According to Coinglass data, heavy selling removed many long positions from the market. This shows ongoing volatility after the Fed’s rate cut.
