Third Fed Rate Cut Lights Fire Under Bitcoin ETFs, Crypto FOMO

Key Notes

• The US Fed cut its interest rates by 25 bps.
• The decision was unusually split, with three policymakers dissenting.
• US spot BTC ETFs added about $223.5m in net inflows the same day.

The US Federal Reserve announced its third-consecutive rate cut for 2025 on Wednesday, Dec. 10, triggering inflows into spot Bitcoin

BTC
$90 170



24h volatility:
2.7%


Market cap:
$1.80 T



Vol. 24h:
$58.45 B

products.

The Fed cut its main interest rate by 25 basis points, 0.25%, with a new target range of 3.5% to 3.75%, the lowest in about 3 years, CNBC reported.

This is the third rate cut in a row in 2025, which is the first cut happened on Sept. 17 and the second on Oct. 29.

According to the CNBC report, the stock market saw notable gains following the announcement from the central bank. For instance, the Dow Jones Industrial Average rose by 500 points, or 5%.

The crypto market also recorded a shot term rally as Bitcoin broke above $94,000 and Ethereum

ETH
$3 197



24h volatility:
3.9%


Market cap:
$385.84 B



Vol. 24h:
$35.89 B

reached a local high of $3,440.

Spot BTC exchange-traded funds also saw a net inflow of $223.5 million, according to data from Farside. The inflows came from BlackRock’s IBIT, worth $192.9 million, and Fidelity’s FBTC, worth $30.6 million.

FOMO Burns Traders Again

The news of the rate cut triggered the fear of missing out (FOMO), among investors.

This is because lower US interest rates usually make risk assets, cryptocurrencies and stocks, for example, more attractive because cash and bonds pay less.

The strong BTC ETF inflows on the same day show that some investors used the rate cut as a signal to buy more Bitcoin exposure.

On the other hand, data from Santiment shows that the FOMO “burned away” fast.

🇺🇸 For the third consecutive FOMC meeting, US interest rates have been cut by 25bps. Initially, retail enjoyed some nice gains from the news. But as always, when euphoria hit, the FOMO burned many. We take a look at what it all means. 👇https://t.co/AHCTWTao0A pic.twitter.com/6tf6SxF8In

— Santiment (@santimentfeed) December 11, 2025

The CNBC report suggests that Fed officials still disagree on policies to tame inflation, which could confuse markets and increase volatility, especially as the economic growth in the US has slowed.

With rates already at a three-year low, the Fed has less room to cut later if the economy suddenly turns worse.

These negative expectations caused some traders to sell their digital assets before another major move.

The global crypto market cap fell 2.66% to $3.08 trillion, CoinMarketCap data shows.

Bitcoin is currently trading at $90,200 and Ethereum is back to $3,200.

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Wahid has been analyzing and reporting on the latest trends in the decentralized ecosystem since 2019. He has over 4,000 articles to his name and his work has been featured on some of the leading outlets including Yahoo Finance, Investing.com, Cointelegraph, and Benzinga. Other than reporting, Wahid likes to connect the dots between DeFi and macro on his newsletter, On-chain Monk.

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