The cryptocurrency market took a hit recently after the Federal Reserve made a decision that left investors uneasy. Although the Fed cut interest rates by 25 basis points on December 10, 2025—bringing the federal funds rate down to 3.5%-3.75%—its cautious tone worried investors. This caused selling across risk assets, including stocks and cryptocurrencies.

Hedera’s native token, HBAR, was no exception. It dropped over 5% in just 24 hours, slipping below $0.13. The increased daily trading volume showed that many traders were dumping their holdings. Earlier in the day, HBAR was trading around $0.14 before falling to a low of $0.1293 during early U.S. market hours.

This drop didn’t happen in isolation. Major cryptocurrencies like Bitcoin and Ethereum also faced heavy selling pressure. Bitcoin even dipped below $90,000, despite the Fed’s attempt to ease financial conditions. The overall market reaction suggests that investors were more focused on the Fed’s cautious outlook than the actual rate cut.

Adding to the negative sentiment was a sharp sell-off in AI-related stocks. Oracle’s disappointing earnings report caused its stock to tumble by 15%, pulling down other tech giants like Nvidia, CoreWeave, and AMD. While the broader S&P 500 index remains near record highs, these tech jitters have added to the risk-off mood.

For HBAR holders, this week has been tough. The token has already lost more than 50% of its value this year, making it one of the worst performers among major altcoins. In contrast, the S&P 500 is up over 17% year-to-date, while Bitcoin is down just over 3%.

Despite these losses, there are still some positives for Hedera. The project continues to gain traction through government partnerships and enterprise integrations. It’s also making progress in the decentralized finance (DeFi) space and real-world asset tokenization—two sectors that are expected to grow.

The recent approval of spot crypto ETFs could also help HBAR in the long run by bringing more institutional attention to the market.

From a technical point of view, HBAR might still face more downside. Its RSI (Relative Strength Index) is below 50, and it has broken below its 50-day exponential moving average—both signs of potential continued weakness. If selling pressure continues, HBAR could drop toward $0.10 or lower in the short term.

However, if Bitcoin manages to break above $100,000 in the coming weeks, it could lift altcoins like HBAR as well. A strong recovery in the crypto market might help HBAR bounce back and retest important resistance levels.

In short, while current conditions look rough for HBAR and other altcoins, long-term growth potential still exists—especially if broader market conditions improve and investor confidence returns.