Fed Cuts Rates, But Powell’s Warning Sends The Crypto Market Lower
Despite the Fed cutting rates and ending QT, crypto markets fell due to Powell's warning that a December rate cut is uncertain.Summary
The Federal Reserve implemented a 25 basis point interest rate cut and announced the end of quantitative tightening (QT) on December 1st, which typically signals bullish sentiment for crypto. However, the crypto market declined, with Bitcoin falling below $110,000, largely due to Fed Chair Jerome Powell's subsequent warning that a December rate cut is "far" from certain. This created a "hawkish cut" scenario, dampening expectations for further easing, causing the US Dollar Index (DXY) to surge to its highest level since August 2025, and reducing the probability of a December cut from over 90% to 70.8% according to the CME FedWatch Tool. This market reaction is compounded by emerging recession warnings, with analysts noting that 82% of the US population lives in areas experiencing recessionary conditions, the highest level since 2020.
(Source：BeInCrypto)