The Federal Reserve’s 25-basis-point rate cut and new T-bill buying plan have opened a fresh phase in U.S. monetary policy. Bitcoin is already reacting, slipping again after the FOMC meeting as traders weigh the softer rate stance against the Fed’s cautious tone on inflation.
Fed Signals New Liquidity Phase With T-Bill Purchases
The Federal Reserve cut rates by 25 basis points at its December meeting and confirmed that it ended quantitative tightening on December 1. Officials also said the central bank will begin buying Treasury bills on December 12 at roughly 40 billion dollars per month. They described the move as a reserve-management step rather than a return to quantitative easing. The purchases will focus on short-duration bills and will stay elevated for several months.
Chair Jerome Powell said policy now sits in a broadly neutral zone, and he noted that another rate hike is no longer on the table. He added that any future move depends on incoming data, which keeps the path open for either a pause or another cut. Powell also pointed to a cooling labor market, though he stopped short of calling it weak, saying the pace of hiring has slowed while job openings continue to decline.
The Fed’s projections showed firmer growth expectations for 2026. Powell said the outlook improves as supply and demand move toward balance, even as inflation remains above target. The central bank stressed that the new T-bill operations aim to maintain smooth market functioning, not to restart broad asset purchases.
Market Reads Policy Shift as Cautious, Not QE
Traders reacted to the announcement by highlighting the timing of the liquidity shift. QT ended on December 1, and T-bill buying begins less than two weeks later, which places fresh reserves into the system during a period of year-end funding pressure. However, the Fed drew a clear line between short-term bill purchases and the large-scale programs it used during past downturns.
Analysts also pointed to Powell’s comments that the economy may accelerate in 2026. That view increased expectations that manufacturing gauges, such as the ISM index, could rise above the 50-point expansion threshold next year. Market participants often link that threshold to stronger risk appetite, though the Fed did not mention any market-specific signals.
Even so, Powell reiterated that inflation remains sticky and that policy should stay restrictive until data show sustained progress. He said the new liquidity operations do not signal a shift toward easing beyond the 25-basis-point move already delivered. The meeting therefore landed between cautious and hawkish, with the central bank anchoring its message to steady policy rather than a new cycle of stimulus.
Bitcoin Slides Again After Latest Fed FOMC Decision
Bitcoin is pulling back once more in the wake of a Federal Reserve FOMC meeting, extending a pattern that has repeated through 2025. The CryptoGoos chart tracks each decision date with yellow lines and shows that six of the last seven meetings were followed by drawdowns, ranging from mid-single digits to nearly 30 percent. The latest candle cluster near 90,000 dollars now tilts lower again after Wednesday’s rate announcement.
Bitcoin Post-FOMC Drawdowns 2025. Source: CryptoGoos on X
This time, the Fed cut rates by 25 basis points, ended quantitative tightening on December 1, and confirmed new T-bill purchases to manage liquidity. Even though those steps add reserves to the system, the policy tone stayed cautious, with Chair Jerome Powell calling the stance roughly neutral and signaling no new hike cycle. Markets appear to read that mix as less supportive for risk assets in the short term.
As a result, Bitcoin trades soft while traders watch whether the familiar post-FOMC dip repeats in full or fades faster than prior episodes. The chart’s green arrow marks the current zone, highlighting that price still sits above the October low but below the recent resistance band. For now, the Fed’s decisions remain a clear catalyst on the BTC chart, with each meeting drawing a sharp reaction in the days that follow.
