Fed Rate Cut Adds Uncertainty for Risk Assets, Insufficient to Fuel Bitcoin Rally, Analysts Say

The Federal Reserve's December 11 rate cut should be seen as a deliberate signal rather than a full policy pivot, resembling the cautious stance after the last easing cycle, analysts said, according to The Block. The Fed raised its economic growth outlook while lowering inflation projections but indicated a higher bar for further easing; Coin Bureau co-founder Nick Pakrill said the cut was "not as hawkish as some expected" but noted that strong opposition and guidance for only one cut next year inject uncertainty into risk assets and are "not enough to trigger a Bitcoin Christmas rally." BRN head of research Timothy Misir said the post-cut pullback shows markets "welcome the cut but reject the guidance," adding that institutional demand remains robust, with smart money wallets holding 10 to 10,000 BTC accumulating about 42,565 BTC since December 1, while ongoing retail selling continues to cap upside and raises questions of whether ETF demand can absorb supply before the macro picture clears.