When the Federal Reserve is Politically Hijacked, Is a Historic Opportunity for Bitcoin Coming? The Federal Reserve has cut interest rates, but the market is panicking. On December 10, 2025, the Federal Reserve announced a 25 basis point rate cut and purchased $40 billion worth of Treasury bonds within 30 days. According to traditional logic, this is a major positive signal, but the market reaction was unexpected: short-term interest rates fell, while long-term bond yields rose instead of falling. Behind this abnormal phenomenon lies a more dangerous signal: investors are pricing in the structural risk of "loss of Federal Reserve independence." For crypto investors, this is a critical moment to reassess asset allocation. Rate Cuts Are Not Just Surface-Level Moves. A 25 basis point rate cut is a routine response to economic slowdown. From an economics textbook perspective, rate cuts are typically seen as standard tools to stimulate the economy, reduce corporate financing costs, and boost market confidence.