Today, the crypto market extended its prolonged bearish momentum, witnessing $497 million liquidations in leveraged positions, a 25-basis-point rate cut, political support from Eric Trump with 416 BTC acquisitions by its American Bitcoin, and millions of dollars inflow in the crypto Exchange-Traded Funds.
As per CoinMarketCap data, the crypto market has declined by more than 3.20% over the past 24 hours and bringing the overall market capitalization down to $3.08 trillion from yesterday’s high of $3.18 trillion.
The fall is led by major assets like Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and XRP, which have plummeted 2.15%, 3.65%, 5.75%, and 3.10%, respectively, during the same period.
Federal Reserve Rate Cut
The market decline followed the Federal Reserve’s 25-basis-point rate cut on Wednesday, marking the third cut this year. After the announcement, major assets initially climbed notably but failed to sustain their upward move and later plummeted.
Lower rate cuts often trigger upside moves, as seen in the past, because they weaken the dollar and make borrowing cheaper (loans become available at lower interest rates for individuals and institutions).
A weaker dollar basically means investors are shifting away from the USD because the returns drop after rate cuts, which pulls its value down against other currencies. For crypto, it becomes positive, as cheaper borrowing brings more liquidity into risk-on assets, and a softer dollar often boosts interest in Bitcoin and Ethereum.
Overall, lower rates tend to lift market sentiment, encouraging both retail and institutional players to add more crypto to their portfolios.
The advanced charting platform TradingView revealed that following the Fed rate cut, BTC surged to $94,495 and ETH touched $3,447. However, both assets failed to sustain this upside momentum.
Also Read: Is This Right Time to Accumulate Solana? What Does Whales’ Activity Tell?
Crypto Liquidations Hit Nearly $500 Million
As a result of the price declines across the crypto market, heavy liquidations of long leveraged positions were recorded, as recorded on Coinglass’s Liquidation Heatmap.
The latest data discloses that nearly 148,728 traders were liquidated over the past 24 hours. The long leveraged positions are the ones that hit the hardest and faced a massive liquidation of $368.87 million, at the same time, short leveraged positions have liquidated $125.85 million of positions
In addition, the single largest liquidation order happened on Hyperliquid crypto exchange, in BTC/USD, which was worth $23.18 million.
Eric Trump Stays Bullish on Bitcoin
Despite bearish momentum across the Crypto market, U.S. President Donald Trump’s son, Eric Trump, made a bold statement in a recent interview, noting that global demand for digital assets is accelerating. He further noted that Bitcoin will “absolutely fly” and go parabolic.
In addition, American Bitcoin, backed by Eric Trump and Donald Trump Jr., recently acquired 416 BTC, increasing its total holdings to 4,784 Bitcoin.
Crypto ETFs See Massive Inflows
Wall Street investors, in line with American Bitcoin, have shown strong interest in crypto Exchange-Traded Funds (ETFs), as reflected on SoSoValue. The data reveals that all major crypto products, including U.S. Spot Bitcoin, Ethereum, and XRP ETFs, have recorded heavy inflows of $223.52 million, $57.58 million, and $10.20 million, respectively, on December 10, 2025.
The inflow suggests that fresh capital is moving into these funds, considered a bullish signal.
Conclusion
Over the past 24 hours, the crypto market witnessed mixed sentiment. The overall market declined 3.20%, even after the Fed rate cut, which triggered nearly $500 million of liquidation. Besides all this, Eric Trump’s view on crypto remains bullish, suggesting that it is a great time to buy crypto, as the market has declined notably over the past few weeks.
Whereas, Wall Street investors have also shown strong interest in the crypto products, which has further reinforced this bullish outlook.
