Introduction BitMorpho Daily News & Fundamentals: BTC Snapshot - Thursday, December 11, 2025 Good morning, crypto investors. As we move past yesterday’s pivotal macroeconomic catalyst, Bitcoin is showing signs of resilience, trading steadily above the $90,000 mark despite immediate price action that might suggest otherwise. Today's focus shifts from the *anticipation* of Fed action to its *consequences*, coupled with important on-chain shifts signaling deeper structural health for BTC. The most significant market mover remains the Federal Reserve’s policy decision from December 10th. The FOMC delivered the widely expected 25-basis-point rate cut, bringing the target range to 3.50%–3.75%, marking the third consecutive reduction. While the move initially pushed BTC toward $94,500, the underlying message was notably divided, with three members dissenting the most since September 2019. Fed Chair Jerome Powell played down near-term hike expectations, which provided immediate support for risk assets. From a fundamentals perspective, the on-chain data paints a constructive picture often obscured by short-term volatility. Analyst reports highlight a significant divergence: Bitcoin exchange reserves continue to decline, falling to near historical lows around 2.76 million BTC, even as spot prices corrected in late 2025. This suggests long-term holders are withdrawing BTC into cold storage rather than preparing to sell, indicating strong conviction despite market turbulence. Furthermore, corporate Bitcoin holdings have decisively surpassed one million BTC, providing a new, robust demand base that differentiates this cycle. Finally, the U.S. fiscal landscape adds another layer of complexity; the Treasury reported a lower-than-expected $173 billion budget deficit for November, partly boosted by tariff revenues. This backdrop of easing monetary policy meeting signs of fiscal friction alongside ongoing speculation regarding President Trump’s potential next Fed Chair pick, Kevin Hassett will dictate market sentiment as we head toward the new year. Keep a close watch on institutional flows today following the Fed’s announcement. News Analysis This segment of the BitMorpho Daily News & Fundamentals focuses on the immediate market reaction, structural data, and the political currents shaping Bitcoin's near-term trajectory. Post-FOMC Consolidation: Price Holds $90K Resilience Following the Federal Reserve's widely anticipated 25-basis-point rate cut on December 10th, Bitcoin is exhibiting characteristic post-catalyst consolidation, finding support just north of the psychological 90,000 level. While the initial reaction saw BTC briefly test the 94,500 range, the divided nature of the FOMC vote with three members dissenting suggests underlying uncertainty about the future pace of monetary easing. This caution in the central bank's messaging has tempered immediate bullish exuberance, forcing BTC to trade sideways as the market digests the implications of a slowly loosening, yet divided, policy stance. The market is now clearly focused on the forward guidance, looking past the rate cut itself to gauge the likelihood of further reductions as we approach the new year. On-Chain Strength: Long-Term Holders Double Down The most compelling narrative remains beneath the surface, where on-chain metrics are signaling significant structural health, contrasting the choppiness of the spot price. Bitcoin exchange reserves have plummeted to approximately 2.76 million BTC, reaching near all-time lows. This steep decline in readily available supply, which notably *accelerated* during the late-November/early-December price correction, is a strong indicator of accumulation, not capitulation. Whales and long-term holders are actively withdrawing BTC from centralized custodians into cold storage, signaling strong conviction in the asset's long-term value proposition despite short-term market turbulence. This tightening liquid supply sets a constructive foundation should bullish sentiment return, as less BTC is available to meet potential demand spikes. Furthermore, the ongoing institutionalization of Bitcoin is evident, with total corporate holdings decisively surpassing the one-million BTC mark, creating a robust new demand base. Regulatory Focus Shifts to Fed Chair Succession With immediate macroeconomic uncertainty being managed by the Fed's rate cut, political attention pivots to the future leadership of the central bank. Speculation remains high regarding President Trump's pick for the next Fed Chair, with Kevin Hassett consistently emerging as the front-runner. Hassett, the current Director of the National Economic Council, aligns with the administration's preference for lower interest rates and potentially less regulatory oversight on the banking sector. While Powell's tenure concludes in May, the market is beginning to price in the anticipation of a more dovish Fed under Hassett, which could act as a steady tailwind for risk assets like Bitcoin should the appointment materialize. This political dimension provides a key sentiment driver, contrasting with the fiscal data showing a lower-than-expected $173 billion budget deficit for November, partly bolstered by tariff revenues. While this fiscal footing is better than expected, the sheer scale of national debt continues to fuel the narrative for scarce assets like BTC as a potential hedge against long-term fiscal stability concerns. Ecosystem and Institutional Flows While BTC price action has dominated headlines, strategic moves continue across the broader ecosystem. Large exchanges are cementing institutional ties; for example, Bybit announced a strategic partnership with an affiliate of Circle to enhance USDC liquidity and ramp up fiat on/off-ramps, signaling the growing intertwining of regulated stablecoins with major trading infrastructure. Simultaneously, Coinbase continues its push to become a core TradFi bridge, with reports noting its move toward multi-asset derivatives and expanded banking connectivity. These developments underscore that institutional and infrastructure adoption remains firmly on track, adding layers of utility and compliance that support Bitcoin’s long-term growth thesis even as its price oscillates around key technical levels. Investors should monitor daily institutional flows for signs of renewed buying interest following the Fed's communication yesterday. Outlook Conclusion: Digesting Uncertainty, Built on Accumulation The immediate market reaction following the Federal Reserve’s 25-basis-point cut reveals a mixed short-term picture, dominated by investor digestion of the FOMC's slightly cautious tone. While the rate reduction provided an initial lift, the dissenting votes injected a note of policy uncertainty, leading to Bitcoin's current consolidation phase hovering resiliently above the $90,000 support. However, when viewed through the lens of structural data, the fundamental outlook remains decisively positive. The dramatic drawdown in exchange reserves to multi-year lows confirms that long-term holders are doubling down, withdrawing supply and signaling deep conviction in Bitcoin’s value despite the choppy price action. This tightening liquidity acts as a constructive floor, suggesting any sustained upward move could be amplified by the constrained on-chain availability. For the next 24 to 48 hours, investors must closely monitor the $90,000 pivot point against the backdrop of forward guidance interpretation. A decisive rejection of this level could signal a deeper pullback testing lower support, whereas a firm hold, coupled with rising trading volume, could signal that the market has fully priced in the FOMC's message and is ready to look toward renewed bullish momentum driven by tightening supply. *** *Disclaimer: This report is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.*