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The Federal Reserve delivered its third straight 25 bps rate cut on December 10, confirming the easing path most traders had been waiting for.<\/p>\n
However, while the decision<\/a> briefly lifted crypto markets, the mood around Ethereum (ETH) on social media swung from euphoria to frustration within hours as prices reversed sharply.<\/p>\n The reversal highlights how quickly retail enthusiasm can turn, especially during macro-driven rallies that often fade once the announcement actually lands.<\/p>\n Ahead of Jerome Powell\u2019s announcement, Polymarket bettors had leaned almost unanimously toward a December cut, reflecting the same confidence seen going into the October meeting. That optimism showed up on crypto X as well, one of the busiest days of Fed-related chatter in months, according to an analysis<\/a> by sentiment tracker Santiment.<\/p>\n But the build-up wasn\u2019t entirely calm. Roughly an hour before Powell spoke, a whale was spotted offloading around $100 million in Bitcoin (BTC), triggering a wave of speculation about whether insiders were bracing for a surprise.<\/p>\n Nevertheless, the decision matched expectations, and the Fed confirmed it would resume purchasing short-term Treasury bills beginning in December to keep bank reserves from falling too low.<\/p>\n Options analysts at Greeks.live added more nuance on December 11, noting<\/a> that the new T-bill program, initially about $40 billion, offers a supportive backdrop but shouldn\u2019t be mistaken for the start of a fresh expansion cycle.<\/p>\n With year-end liquidity thinning, they warned that crypto markets tend to remain quiet, and options positioning currently leans defensive, with puts trading at a premium.<\/p>\n Ethereum climbed toward $3,433 during the post-FOMC enthusiasm, but retail traders who chased the move were quickly caught on the wrong side when the price slipped back toward $3,170. Santiment’s sentiment scores revealed that ETH’s positive-to-negative ratio spiked at the top, only to collapse as the pullback took hold.<\/p>\n “What is supposed to be bullish news actually sees a short-term bearish effect due to all of the retail traders buying and larger whales gladly selling off their coins to them on the mini rally that is caused by a U.S. rate cut,” explained Santiment.<\/p>\n<\/blockquote>\n Across broader timeframes, ETH performance remains mixed, with the world\u2019s second-largest crypto down around 3% on the day and nearly 10% over the past month, though still slightly higher than last week.<\/p>\n Bitcoin was also under similar stress. After briefly touching<\/a> around $94,000 during the announcement window, price action cooled<\/a>, with the OG crypto changing hands for just over $90,000 at the time of this writing, which is down about 2% in the last 24 hours and 3% over seven days.<\/p>\n That being said, some analysts think digital assets may rebound as liquidity improves heading into early 2026, and smart-money wallets have accumulated more than 42,000 BTC since late November, suggesting larger investors are positioning themselves early.<\/p>\n \u201cIf U.S. inflation continues drifting toward target and economic data remains stable, 2026 could give digital assets the breathing room they\u2019ve been waiting for,\u201d Santiment wrote.<\/p>\n<\/blockquote>\n The post Ethereum Sentiment Crashes After FOMC Rate Cut<\/a> appeared first on CryptoPotato<\/a>.<\/p>\n\nFed\u2019s Move Lands as Traders Split Between Optimism and Panic<\/h2>\n
Ethereum Sentiment Reverses as Price Slides<\/h2>\n
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