Emre Yumlu 
The Federal Reserve’s (Fed) third interest rate cut of the year has stirred movement across the cryptocurrency market. Following the widely anticipated decision announced on Wednesday, Bitcoin and other digital assets saw a modest recovery. Analysts, however, point out that historical patterns suggest a stronger follow-through rally could be forming.
Market Behavior After Three Consecutive Cuts
Between September and December, the Fed reduced rates by a total of 75 basis points, marking a notable shift toward looser monetary conditions. According to on-chain analytics firm Santiment, each cut has generated a short-term wave of selling pressure, despite being structurally bullish for the crypto market. The firm attributes this reaction to a familiar market dynamic often described as “buy the rumor, sell the news.”
Santiment notes that these initial pullbacks typically do not last long. Once the immediate volatility subsides, markets tend to experience a relief rebound, creating more predictable trading setups. The firm adds that a slight rise in fear or small-scale retail selling can sometimes signal that the post-cut dip is nearing its end.
Lower interest rates and cheaper borrowing conditions frequently spark greater appetite for risk assets. Crypto markets, historically tied to broader risk sentiment, tend to benefit from this environment.
A Move Largely Priced In
Jeff Ko, Chief Analyst at CoinEx, states that the Fed’s latest cut was largely anticipated and already reflected in market pricing. What drew more attention was the Fed’s updated dot plot, which he described as “leaning slightly hawkish” regarding future rate expectations.
Ko also highlighted the Fed’s 40 billion dollars in short-term Treasury purchases, emphasizing that this action should be interpreted as a technical liquidity adjustment rather than a broad stimulus program. Nevertheless, equity markets reacted positively, and the improved sentiment helped support Bitcoin’s rebound.
Signs of a Maturing Bitcoin Market
Jurrien Timmer, Director of Global Macro at Fidelity Investments, offered a longer-term perspective. He noted that Bitcoin has lagged behind major equity indices this year but added that the asset’s market structure shows signs of maturation compared to previous cycles. The current bullish phase, he suggested, appears to be reaching an advanced stage in its development.
As of Friday morning, Bitcoin recovered from its initial drop below 90,000 dollars and briefly surged to 93,500 dollars on Coinbase. Strong resistance at that level, however, pushed the price back toward 92,300 dollars at the time of reporting.
You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.