Markets React Sharply as Fed’s Rate Cut Triggers Unexpected Sell-Off Across Major Crypto Assets

Dogecoin's price increased by 4% to $0.14, with a market capitalization of approximately $21 billion and a trading volume of around $1.6 billion. This rise follows a notable surge in on-chain activity, with daily active addresses exceeding 67,500, marking a significant uptick in engagement on the network.

Bitcoin is currently trading within a narrow price range, with analysts questioning whether the traditional four-year cycle that has historically influenced its price is still relevant. Despite macroeconomic shifts and mixed signals from the Federal Reserve, Bitcoin's price movements remain constrained, reflecting a cautious market environment.

Market analyst Lyn Alden has indicated that the Federal Reserve's recent monetary policy shift suggests a potential move towards permanent money printing, despite the Fed's reluctance to label it as such. This subtle change may reflect the central bank's response to ongoing economic pressures and market conditions.

Bitcoin (BTC) has returned to the $90,000 mark, while Ethereum (ETH) is testing the $3,200 support level. This follows a recent interest rate cut by the Federal Reserve, which has led to fluctuating market sentiments within the cryptocurrency community.

The cryptocurrency market experienced a significant downturn following the Federal Reserve's third consecutive 25 basis point interest rate cut, which was anticipated by many. Despite initial price surges for Bitcoin, Ether, XRP, and Solana, the momentum quickly reversed, leading to notable declines in their values. Bitcoin fell over 5%, while Ether dropped more than 8.5% at one point.

The Federal Reserve's recent FOMC meeting highlighted Jerome Powell's hawkish stance, influencing market sentiment across cryptocurrency assets. Powell's remarks set the tone for evaluating the implications of the Fed's decisions on the crypto market, particularly in light of anticipated interest rate adjustments.

Crypto prices experienced a pullback on December 11, following a brief bounce after the Federal Reserve's recent rate cut. The total cryptocurrency market capitalization decreased by 3% to $3.1 trillion, with Bitcoin trading at $89,975, down 2.7% from previous levels. Other major cryptocurrencies like XRP, UNI, and DOT also retraced after the initial surge.

Bitcoin has stabilized above the $92,000 mark after a rebound from a dip towards $90,000, providing temporary relief for bulls. However, market sentiment remains largely bearish, with traders anticipating further declines unless a significant shift in momentum occurs ahead of the Federal Reserve's upcoming meeting.