From Wednesday night to early Thursday, Bitcoin’s price declined despite the U.S. Federal Reserve’s decision to cut interest rates. Fed Chairman Jerome Powell signaled a cautious approach through early 2026, which limited investor enthusiasm. The Federal Reserve reduced its benchmark interest rate by 25 basis points to a range of 3.50% to 3.75%, in line with market expectations. However, within the Federal Open Market Committee, three members supported the cut, one advocated for a deeper 50 basis point reduction, and two opposed any cut. Powell’s hawkish statements dampened demand for risk assets, including cryptocurrencies.
Bitcoin briefly surged above $94,000 but then fell below $90,000, stabilizing near $89,730. Analysts noted that the Fed’s firm stance surprised the market and triggered a price pullback, reducing investors’ risk appetite. The Fed’s “dot plot” indicates that most members expect only one 25 basis point cut in 2026, as strong economic growth prospects and tax policy changes limit further rate reductions in the near term.
Recent volatility in Bitcoin reflects concerns in other financial markets. Technology stocks, including Oracle, experienced declines due to weak earnings, while global markets in Europe and Asia showed downward trends, and U.S. equity futures were also lower. Experts suggest that part of the Bitcoin price decline stems from the market having already priced in the rate cut. Additionally, political and economic uncertainties in 2026, along with inflation concerns related to investments in artificial intelligence, are weakening risk sentiment.
Last week, Bitcoin experienced significant fluctuations, dropping to $84,000 before rising to $94,000 and closing at $90,429. Key support levels are at $87,200 and $84,000, while resistance is found between $94,000 and $110,000. Generally, rate cuts tend to boost markets, but this time Bitcoin’s price decline is attributed to market expectations and other factors. Currently, Bitcoin is trading near $90,114.
Source: bitcoinmagazine
