Crypto Market Today (Dec 11): BTC, XRP, UNI, DOT Slip After Short-Lived Fed Rate Cut Rally

December 11, 2025 Nxtgen Virtue

Digital asset prices retreated on December 11 as investors unwound positions following a short-lived rally triggered by the Federal Reserve’s latest interest rate decision.

Key Developments

The overall cryptocurrency market experienced selling pressure, with total liquidations exceeding $500 million as market sentiment remained in fearful territory.
Despite the Fed delivering an anticipated rate cut, Fed Chair Jerome Powell’s measured commentary and climbing global bond yields prompted investors to sell following the announcement.
Market observers identify critical support levels for Bitcoin between $88,000 and $84,000, while Standard Chartered has revised its year-end projection downward to $100,000.

Market Performance

The aggregate crypto market capitalization declined 3% to reach $3.1 trillion. Bitcoin changed hands at $89,975, representing a 2.7% decrease over 24 hours after pulling back from an intraday high exceeding $94,000. Ethereum decreased 3.4% to $3,123, while XRP retreated 4% to $2.00.

Mid-cap and smaller digital assets experienced steeper declines. Uniswap dropped 7% to $5.33, Polkadot fell 8% to $2.06, and Ethena declined 10% to $0.2486. The Crypto Fear & Greed Index registered 29, indicating continued fear among market participants despite a modest uptick.

Derivatives Activity

Trading data revealed significant stress in leveraged positions. According to CoinGlass, liquidations totaled $519 million during the past day, with long positions accounting for over $370 million of those forced closures. Open interest contracted 1.7% to $131 billion, while the average relative strength index across markets settled at 39, suggesting neutral momentum.

Fed Decision Impact

The market response followed the Federal Reserve’s quarter-point reduction on December 10, lowering the benchmark rate range to 3.50%–3.75%. With markets pricing in an 89.4% likelihood of this outcome beforehand, much of the positive impact had already been incorporated into prices.

Bitcoin’s retreat from above $94,000 to below $90,000 illustrates a typical pattern where assets decline after widely anticipated events materialize.

Powell struck a cautious tone during his post-meeting comments. Citing inflation still running at 3.2%—above the Fed’s target—and weak November employment gains of just 5,000 jobs, he suggested limited additional rate reductions ahead, projecting only one more cut through 2026.

Broader Financial Market Reactions

Bond markets tightened immediately. The 10-year Treasury yield increased 5 basis points to 4.25%, creating more restrictive financial conditions rather than the easier environment typically associated with rate cuts.

International developments added additional pressure. Japan’s 2-year government bond yield exceeded 1% for the first time in ten years, raising costs for yen-based carry trades frequently employed to fund leveraged cryptocurrency positions. The reversal of these trades, combined with elevated leverage levels entering the Fed meeting, intensified the downturn.

Market expectations also shifted dramatically. CME FedWatch data now shows traders assigning just 40% probability to another rate cut by March 2026, down sharply from 70% earlier in the week. This sudden decline in easing expectations removed a key supportive factor for speculative investments.

Analyst Perspectives

Standard Chartered characterized the Fed’s action as a “hawkish cut,” adjusting their year-end Bitcoin forecast to approximately $100,000. Analysts view the $88,000–$84,000 range as the initial zone where meaningful buying support could emerge.

Nic Puckrin, investment analyst and co-founder of The Coin Bureau, explained that ambiguity surrounding the Fed’s 2026 policy direction constrains the likelihood of a December rally. He observed that markets typically face challenges when sentiment transitions from optimism to caution, particularly during periods of reduced liquidity.

Puckrin suggested any near-term recovery hinges on more stable funding conditions and clearer indications from actual buying activity. In the interim, he expects price movements to remain volatile, driven primarily by trader positioning rather than underlying momentum.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.