Bitcoin (BTC) and Ethereum (ETH) saw a wave of volatility after the US Federal Reserve (Fed) cut interest rates for a third straight time on Wednesday.

The agency lowered rates by 25 basis points to 3.50%-3.75% at its December meeting. The Federal Open Market Committee (FOMC) vote showed a 9-3 split, with one official calling for a 50-basis-point cut and two others favoring no cuts at all. Policymakers anticipate only one 25 bps rate cut in 2026 and another in 2027.

Following the Fed’s decision, Chair Jerome Powell’s speech indicates that the agency will adopt a wait-and-see approach going into 2026. He cleared up any expectation of a rate hike while highlighting downside risks in the labor market and elevated inflation.

The agency’s cautious tone has sparked selling in the crypto market, with Bitcoin dropping below $90,000. The leading crypto is down over 3%, dragging several others along with it.

Ethereum is down 4%, falling below $3,200, while XRP has also dived over 4% as it struggles to hold the $2.00 psychological level.

The move has seen several long positions wiped out of the market, with liquidations reaching $440.2 million over the past 12 hours, according to Coinglass data. Long liquidations accounted for $334.8 million, while short liquidations reached $105 million.