US cryptocurrency markets are poised for an uncertain revival amid a lull in market liquidity during the holidays and anticipation of important signals from the Federal Reserve. Bitcoin’s value has fallen below $90,000 as of December 14, 2025, and its total market capitalization is $3.08 trillion, with a decline of 2.1% on a daily basis, reflecting caution ahead of FOMC meetings and macro data. Ethereum is stable at around $3,338 and its RSI is neutral, while Bitcoin dominance has risen to 58.7%, this underscores the recent defensive capital shifts in the market, driven by the Fed’s end of quantitative tightening (QT) and ETF flows. This follows three months of volatility, with BTC and ETH posting net declines despite interim highs driven by policy changes.
3-Month US Market Performance Data
US-focused metrics reflect a volatile journey, with Bitcoin falling off its 2025 peak above $106,000, and Ethereum suffering even more losses amid altcoin underperformance.
Bitcoin spot ETFs led by BlackRock’s iShares, which are seeing $1 billion in inflows per week, are in contrast to Grayscale’s outflows, indicating selective institutional buying. Ethereum ETFs saw positive trends in October, yet a broader sense of “fear” persists.
Current Technical Levels for US Traders
Bitcoin prices are testing the $90,000 support level after the interest rate cut, Bitcoin is under increasing pressure as Fed Chairman Koch Goolsbee raises inflation concerns. A decline in Ethereum’s ETH/BTC ratio indicates Bitcoin’s strength, and bullish confirmation is needed at the RSI level of 48.
Factors Influencing US Sentiment: Fed Policy And ETF Dynamics
The Fed injected liquidity by halting QE (ending bond sales) on December 1, similar to the 2023-2024 boom, but the $29.4 billion injection disappointed QE expectations. The ETF has amassed $62.9 billion since its launch, including $6.6 billion worth of BTC so far this year, though fears remain over withdrawals and tax-loss harvesting in September. The possibility of a rate cut by the FOMC and Powell’s stance could change this, but inflation and economic slowdown could limit economic gains.
Conclusion
US crypto recovery hangs in the balance: Strong ETF inflows and Fed liquidity are supporting the decline, nevertheless, technical resistance, negative 3-month returns, and caution at the macro level suggest that range-bound trading will continue without breakthroughs from the FOMC. US investors should prioritize BTC near support levels with a 1-2% risk, leverage ETF data to increase their credibility, and avoid excessive investments in altcoins amid ETH/BTC weakness. Maintaining discipline through the table level gives traders the potential for a fourth-quarter rally if catalysts are favorable, or safety in a prolonged consolidation.
FAQs
Q: Is Bitcoin’s current decline a buying opportunity for US traders?
A: Support could potentially be found around $85K–$80.7K, supported by YTD ETF inflows of $6.6 billion and the expiry of Fed QT, but confirm this with volume and clarity from the FOMC.
Q: How do Federal Reserve decisions affect cryptocurrency prices?
A: Interest rate cuts and liquidity-boosting measures like QT tend to boost bulls by lowering borrowing costs; inflation critics tend to fuel sell-offs, as seen after Goolsbee’s comments
Q: Should I focus on Ethereum or altcoins now?
A: BTC dominance favours major currencies; ETH faces resistance at $3,800, with the ETH/BTC ratio declining – limit investments in alternative currencies until signs of a reversal appear.
Q: What are short-term goals that are practical?
A: BTC is valued at $94.6K and ETH at $3,445 upon a breakout; a failure risks a three-month low. Use the tables for stop losses.
Q: How reliable are ETF flows as indicators?
A: At a high level—$62.9 billion in cumulative investment reflects institutional conviction, with BlackRock leading the way; monitor weekly for changes in sentiment.