As reported by NewsBTC, crypto markets dropped after the Federal Reserve delivered the third 25bps rate cut of 2025, despite the move being widely anticipated. Santiment's analysis highlights a divergence in market behavior, with retail investors treating the cut as a bullish signal while whales used it as an opportunity to offload assets. Bitcoin briefly surged to $94,044, and Ethereum hit $3,433, but both saw sharp declines afterward. On-chain data revealed abnormal whale activity, including a $100 million Bitcoin sell-off within an hour. Santiment notes that while the Fed's actions signal a more dovish stance, the market's reaction suggests a 'buy the rumor, sell the news' pattern. The report also points out that Bitcoin is down 3.6% year-to-date, compared to gains in the S&P 500 and gold, and suggests a potential catch-up for crypto in 2026 if macroeconomic conditions remain stable.
Crypto Markets Drop After Fed's 2025 Rate Cuts, Santiment Analyzes Retail and Whale Behavior
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Summary
Crypto markets fell after the Fed’s third 25bps rate cut in 2025, despite the move being widely expected. Santiment tracked whale activity, showing large holders offloading assets, including a $100 million Bitcoin sell-off in one hour. Retail investors, however, bought during the drop. Bitcoin briefly hit $94,044, Ethereum $3,433, but both fell sharply. Whale movement suggests a 'buy the rumor, sell the news' pattern. Bitcoin is down 3.6% year-to-date, lagging behind the S&P 500 and gold. Santiment sees potential for a 2026 rebound if macro conditions stay stable.
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