Post-cut market patterns point to a potential breakout once short-term volatility fades.
Bitcoin saw a renewed lift after the US Federal Reserve delivered its third consecutive interest rate cut, trimming a total of 0.75% between September and December. While the move was widely anticipated, analysts say the typical post-cut market pattern suggests a bigger rally may follow once early selling pressure cools.
Onchain research firm Santiment noted that each of the recent cuts triggered short-term declines, reflecting the classic “buy the rumor, sell the news” reaction. It added that markets generally rebound once retail selling and fear levels peak, creating a repeatable setup for traders. The firm highlighted that a slight pullback paired with rising FUD often marks the end of the downswing, paving the way for a recovery.
Lower interest rates historically increase risk appetite by reducing borrowing costs, allowing more capital to flow into speculative markets such as crypto.
Jeff Ko, chief analyst at CoinEx, said the cut was fully priced in, but the Federal Reserve’s updated outlook leaned “slightly hawkish.” He emphasized that the Fed’s $40 billion in short-term Treasury purchases was a technical move to support liquidity, not a broad stimulus program. Still, he said investor sentiment reacted positively, helping Bitcoin rebound alongside US equities.
Market structure is also strengthening. Fidelity’s Jurrien Timmer noted that although Bitcoin has lagged behind equities this year, the asset is showing signs of a maturing market cycle, with price action becoming more stable compared to past bull phases.
By Friday morning, Bitcoin had climbed from below $90,000 to $93,500 before encountering resistance, settling near $92,300. Analysts now look for confirmation that the post-cut dip has ended—signaling potential for the next leg higher.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.