Bitcoin Faces Volatility as Fed 25bps Rate Cut Triggers Liquidity Shift and Structural Repricing Across Markets

The Federal Reserve delivered a 25-basis-point Fed rate cut to 3.75%–4.00% and signaled the end of its balance-sheet reduction on December 1. A split vote—one member for a 50 bp cut and another for no change—exposed internal dissent. Chair Powell warned that December moves are not assured amid data gaps that raise decision-making risk.

Equity indices retreated from intraday highs as traders reassessed the tightening cycle, while the USD and bond yields rose and gold fell more than $40.

From a macro lens, the balance-sheet unwind marks a liquidity turning point, with policy uncertainty prompting traders to reprice the pace of future cuts. Risk assets face near-term pressure amid elevated volatility.

Bitunix analysts point to a BTC liquidation map with support around 109,600–108,000 and resistance between 112,300 and 116,000; a breach could trigger cascade liquidations in a tighter USD backdrop.