Federal Reserve Rate Cut and Powell's Speech: Crypto Market Faces "Hawkish Dovish" Battle

According to the latest information, the Federal Reserve announced a rate cut on December 10, 2025, but Chairman Powell’s speech tone was more "hawkish," bringing a dual impact of short-term boost and long-term uncertainty to the crypto market. The market is closely watching subsequent actions, especially the end of quantitative tightening (QT), which could become a key catalyst for a new rally cycle.
Key Decision Highlights

FOMC December Meeting
2025-12-10
-25 bps
Benchmark Rate Cut
3.50-3.75%
New Rate Target Range
9-3
Voting Results
Latest Developments: December Rate Cut and Powell’s "Hawkish" Signal

At the December 10, 2025, Federal Open Market Committee (FOMC) meeting, the Fed announced a 25 basis point reduction in the benchmark rate, adjusting the target range to 3.50%-3.75%. This is the third consecutive rate cut after October and August, aimed at addressing risks from a slowing labor market.
"Hawkish" Signal
Powell stated after the meeting that inflation risks remain tilted to the upside, and that policy "does not have an risk-free path," emphasizing that future decisions will "depend on data." This means rate cuts are not a certainty, and the policy path remains uncertain.
Unexpected Measures
Market was surprised to learn that the Fed announced it would restart purchases of short-term Treasury bills, planning to buy $40 billion of T-bills monthly starting from December 12 (Friday), to address short-term liquidity tensions.
Market Response Analysis

Crypto Market Short-Term Outlook
Risk Appetite
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Short-term Boost
Rate cuts and expanded balance sheet expectations inject liquidity into the market, benefiting risk assets.
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Long-term Uncertainty
"Hawkish" language suggests policy wavering, which could trigger market corrections.
Recent Historical Speeches Review

Powell’s policy stance is not static. Reviewing his recent key speeches provides clearer insight into the evolution of his thinking.
October 15: Signaling a Liquidity Turning Point
Powell explicitly pointed out "rising downside risks to employment" and "balance sheet runoff may end in the coming months," igniting market expectations for easing liquidity, with volatility for major cryptocurrencies like Bitcoin and Ethereum rising to 12%.
August 23: Hinting at the Start of a Rate Cut Cycle
At the Jackson Hole global central bank symposium, Powell hinted that due to rising employment risks, the Fed might initiate rate cuts, triggering a strong rally in US stocks and market expectations for easing policies.
Summary and Outlook

Overall, Powell’s speeches have a complex and multi-dimensional impact on the crypto market. In the short term, rate cuts and potential balance sheet expansion provide liquidity support, boosting risk appetite. However, in the long term, his hawkish tone and warnings about inflation risks keep the market cautious about future policy paths. Any signals of slowing rate hikes or maintaining high interest rates could trigger corrections.
For investors, the key is to identify the difference between short-term sentiment and long-term fundamentals. The market generally considers the formal end of Fed’s quantitative tightening (QT) as an important milestone to verify the easing cycle. Therefore, investors should closely monitor subsequent meetings’ "dot plot" forecasts, economic projections (SEP), and Powell’s language changes during press conferences.
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Between Powell’s "hawkish" and "dovish" stances, the crypto market is playing a high-stakes game regarding liquidity. #美联储降息预测 #广场发帖领$50 #加密市场反弹 #参与创作者认证计划月领$10,000 #内容挖矿赚丰厚返佣