Gate Daily (December 11): After Powell's rate cut, "two sentences" ignite market bullishness; Japan's cryptocurrency shifts to securities law

Bitcoin (BTC) surged temporarily before pulling back, currently around $91,220 as of December 11. The Federal Reserve announced a 25 basis point cut to the benchmark interest rate, with Chairman Powell stating “rate hikes are not everyone’s baseline expectation.” Starting December 12, the Fed will purchase $40 billion in Treasury bonds over the next 30 days, igniting bullish market sentiment. Japan is preparing to transfer cryptocurrency regulation from its payment system framework into a new framework specifically designed for investment and securities markets.

Macroe Events & Crypto Hotspots

1. The Federal Reserve announced a 25 basis point rate cut, lowering the range from 3.75%-4% to 3.5%-3.75%. This is the third consecutive rate cut, with a total reduction of 75 basis points. The dot plot indicates only one rate cut in 2026 and another in 2027, with the federal funds rate reaching a long-term target of about 3%. Chairman Powell stated “rate hikes are not everyone’s baseline expectation,” and the purchase of $40 billion in Treasury bonds over 30 days from December 12 sparked bullish market sentiment.

2. Japan’s Financial Services Agency (FSA) released a comprehensive report on the regulation of cryptocurrencies across multiple sectors, drafted by the Financial System Council Working Group. The document outlines a plan to transfer the legal basis of crypto regulation from the Payment Services Act (PSA) to the Financial Instruments and Exchange Act (FIEA), the primary law overseeing securities markets, issuance, trading, and disclosures. The report notes that “crypt assets are increasingly used domestically and internationally as investment targets,” emphasizing the need for regulatory measures that treat cryptocurrencies as financial products to protect users. Incorporating cryptocurrencies into the FIEA scope will strengthen disclosure requirements for tokens issued via Initial Exchange Offerings (IEOs) or managed by crypto exchanges.

News Highlights

1. Huang Licheng deposited approximately 255,000 USDC into Hyperliquid to increase his ETH long positions.

2. U.S. OCC issued a warning to Wall Street regarding the “de-banking” of sectors like digital assets, stating such practices are “illegal.”

3. The U.S. CFTC announced the first batch of members for the CEO Innovation Committee.

4. Lighter surpassed Hyperliquid in 24-hour Perp DEX trading volume, ranking first.

5. Dreyfus and Galaxy will launch tokenized liquidity funds on the Solana chain next year.

6. Stripe acquired Valora Wallet team to expand its stablecoin services.

7. “Federal Reserve mouthpiece”: Three rate cuts have failed to resolve internal disputes; vigilance needed for “stagflation risks.”

8. Powell: The Fed has shifted to a wait-and-see strategy; further rate hikes are not currently expected.

9. The Fed cut rates by 25 basis points; only one cut is expected in 2026.

Market Trends

1. Latest Bitcoin news: $BTC surged temporarily before retreating, currently around $91,220; over the past 24 hours, liquidations totaled $118 million, mostly long positions.

2. U.S. stock markets closed higher on December 10, with the Fed’s expected 0.25 percentage point rate cut. Chairman Powell expressed optimism about economic growth, viewing tariffs’ impact on inflation as temporary. The S&P 500 rose 46.17 points (+0.7%) to 6,886.68, nearing the October 28 all-time high. The Dow Jones Industrial Average increased 497.46 points (+1.1%) to 48,057.75, and the NASDAQ Composite gained 77.67 points (+0.3%) to 23,654.16.

(Source: Gate)

3. According to Gate’s BTC/USDT liquidation map, at the current price of $91,390.10 USDT, if the price drops near $91,101, total long liquidation exceeds $294 million; if it rises near $91,406, total short liquidation exceeds $117 million. Short liquidations are significantly lower than longs; investors should manage leverage carefully to avoid large-scale liquidations during market volatility.

(Source: Coinglass)

4. In the past 24 hours, spot inflows totaled $2.24 billion, outflows $2.37 billion, net outflow $130 million.

(Source: Coinglass)

5. In the past 24 hours, net outflows led by contracts like $PIPPIN, $LUNA2, $TRUTH, $LUNA, $FOLKS , indicating trading opportunities.

Top KOL Perspectives

Phyrex Ni (@Phyrex_Ni): “Today’s operations weren’t difficult but a bit tiring. The last Federal Reserve meeting of 2025 has passed, and overall it didn’t significantly impact the market. Looking at the dot plot, there’s a slightly looser stance compared to September, but still a big gap from market expectations. No worries, the biggest variable in 2026 is Powell being replaced by Hasser, and the June dot plot after the transition will be more important. Powell’s speech mainly refrained from hawkish signals except for some skepticism about January rate cuts. He remains optimistic about inflation, believing tariffs’ impact on goods inflation is likely temporary. If inflation declines, the Fed will consider more rate cuts. They also reiterated that if the labor market continues to weaken, they will consider more easing.”

“The next month depends on data. Deteriorating employment figures increase the likelihood of rate cuts, and falling inflation data also boosts that probability—these two points remain unchanged. By January, the Supreme Court might announce decisions regarding Trump’s tariffs; we’ll see. Overall, Powell’s performance today was much better than December last year—last year was truly hawkish. He also believes that GDP will see significant growth in 2026.”

“Regarding Bitcoin data, turnover remains high, mainly due to investors’ strategic play during key periods. After today, turnover may decrease gradually. The rising turnover indicates more active short-term investors, especially new investors with costs below $90,000. The chip structure remains normal, with no signs of stability issues. High-position investors are not panicking. We’ll see upcoming data in December. If expectations for rate cuts in January continue to rise, market enthusiasm can be maintained.”

Today’s Preview

1. China’s M2 money supply at the end of November (annual rate), previous value 8.2%

2. Switzerland’s policy interest rate, previous value 0.00%

3. Canada’s September trade balance (billion CAD), previous value -6.32

4. US initial jobless claims last week (thousand), 1206, previous 191

5. US October Producer Price Index (YoY), previous 2.6%

6. US September trade balance (billion USD), previous -59.6

7. Swiss National Bank interest rate decision