At the recent Federal Reserve meeting in December, Charles Evans, President of the Chicago Fed, stood out by disagreeing with the majority. While most members supported a rate cut, Evans urged caution, saying the Fed should wait for more data on how tariffs might affect inflation before making big moves. He believes interest rates could drop significantly next year but wants to see more evidence first.

The Fed’s decision to lower interest rates to a range of 3.5%–3.75% is the lowest level since 2022. Lower rates make borrowing cheaper, which can help boost economic growth. This move may also benefit cryptocurrency markets. Assets like Bitcoin (BTC) and Ethereum (ETH) could gain from looser monetary policy because it reduces pressure on debt-heavy investments and may improve liquidity in decentralized finance (DeFi) platforms.

Other Fed officials had different views. Kansas City Fed President Jeffrey Schmid warned that inflation is still high and believes current policy remains slightly restrictive. Meanwhile, Philadelphia Fed President Michael Purser noted that although the job market is under pressure, it’s still holding up well. Purser also pointed out that future monetary policies may need to adapt as technologies like artificial intelligence begin reshaping the economy.

Market reaction to the Fed’s decision has been mixed. While some investors welcome the lower rates, others remain cautious due to ongoing inflation and uncertainty about future policies. The crypto market hasn’t shown a major response yet, making it hard to predict long-term effects. Still, lower interest rates could encourage more activity in DeFi and lead to short-term price increases in digital assets.

A similar event happened back in September 2019 when the Fed cut rates amid disagreement within its ranks. Back then, Bitcoin’s price surged nearly 200% over the following year, showing how sensitive crypto markets can be to changes in monetary policy.

As of December 12, 2025, Bitcoin is trading at $92,012.87 with a total market value close to $1.84 trillion. In the last 24 hours, it rose by 2.28%, though it’s still down 20.63% over the past three months. Trading volume is high at $69.38 billion, indicating active market participation.

According to research from Coincu, shifts in regulation and financial policy can greatly impact cryptocurrencies and DeFi protocols. Historically, lower interest rates boost activity in these areas, including yield farming strategies that offer high returns on crypto assets. As financial conditions continue to evolve, it’s important for investors to keep a close eye on policy changes and adjust their strategies accordingly.