Fed Delivers Expected 25bp Rate Cut; Target Range Now 3.0%–3.5%
The Federal Reserve announced a 25 basis-point reduction to the federal funds rate on Dec. 10, 2025, lowering the target range to 3.0%–3.5%. The cut matched market expectations—CME Fed futures and betting markets on Polymarket and Kalshi had signaled the outcome for weeks—so volatility was muted immediately after the release.
For crypto markets, a rate cut is generally supportive of risk assets: it can ease dollar strength, lower borrowing costs for traders and institutions, and increase liquidity that often flows into cryptocurrencies and altcoins. The near-term impact will depend on the Fed's forward guidance and any signals about further easing; if policymakers telegraph more cuts, crypto could see additional tailwinds, while ongoing macro uncertainty and liquidity cycles will still shape market moves.