Bitcoin climbed above $94,000 on Tuesday, marking a 5% gain, as the cryptocurrency market rallied ahead of the Federal Reserve's interest rate decision. The surge followed President Donald Trump's remarks suggesting the next Fed Chair would lower rates immediately, triggering over $263 million in short liquidations. Altcoins like Ethereum and XRP also rose, though XRP underperformed the broader market.
The cryptocurrency market experienced a notable rebound on December 9, 2025, with Bitcoin (BTC) jumping 5% to surpass $94,000, approaching $95,000 for the first time since mid-November. This movement came amid heightened anticipation for the Federal Open Market Committee (FOMC) meeting on December 10, where a 25 basis-point interest rate cut is widely expected, with market pricing showing a near-90% probability.
President Donald Trump's comments in a Politico interview played a key role in boosting sentiment. Trump stated that the next Federal Reserve Chair, to be announced soon with White House economic advisor Kevin Hassett as a frontrunner, would be expected to lower interest rates immediately. Hassett himself noted during a WSJ Leadership Institute panel that "there's plenty of room to lower rates." These remarks sparked over $263 million in short liquidations in the past four hours, according to Coinglass data, with total liquidations reaching $387.5 million across 107,333 traders in 24 hours, including a $23.98 million BTC long on HTX.
Ethereum (ETH) led altcoin gains with an 8% increase to around $3,320, while XRP rose 4% but underperformed, trading in a $2.05 to $2.17 range with below-average volume of 5.88% under its seven-day average. Other tokens like BNB and Solana (SOL) gained 3% and 6%, respectively. Bitcoin's rise from $90,000 reflected growing expectations of Fed easing, though strategists at Bank of America predict the Fed's balance sheet could grow by $45 billion monthly from January 2026 to address reserve drains.
Traders remain cautious, with Koinly CEO Robin Singh warning that any deviation from expectations could unsettle sentiment. Nic Puckrin of The Coin Bureau described Bitcoin's hover around $90,000 as reflecting fears of a "hawkish cut" in forward guidance. The Fed's quantitative tightening ended in early December, reducing its balance sheet to $6.5 trillion from $9 trillion, potentially pressuring risk assets like crypto if liquidity tightens further.
XRP's muted response, despite a 4.71% gain from $2.08 to $2.15, highlights capital rotation to higher-beta assets during Bitcoin-led surges. Support holds at $2.05, with resistance at $2.17; sustained volume above this level could signal alignment with broader market momentum.
