Bitcoin declined on Thursday as investors reacted to the Federal Reserve’s rate cut, which was shadowed by a cautious policy outlook and deep disagreements among American central bankers, clouding prospects for monetary easing next year.
The world’s largest cryptocurrency traded 2.5% lower at $90,421.2 as of 09:40 Moscow time. It had dipped below $90,000 over the preceding 24 hours.
Get exclusive crypto market insights, deep analyst research, and price forecasts with an InvestingPro subscription—55% off today
Fed cuts rates, but several policymakers dissent
The Fed delivered the widely anticipated 25-basis-point rate reduction on Wednesday, the third this year, setting the target range for the federal funds rate at 3.50%-3.75%.
However, several policymakers registered objections: two members favored skipping the cut, while another advocated for a larger 50-basis-point reduction. The split underscored growing ambiguity within the central bank regarding the trajectory of inflation and the resilience of the US job market, reducing investor confidence.
Chair Jerome Powell stated the Fed will remain “data-dependent” and emphasized that policy “is not on a predetermined path.” Updated projections showed just one rate reduction slated for 2026, signaling a slower easing trajectory than markets had anticipated.
Clearer signals for sustained monetary loosening support highly speculative assets like cryptocurrencies by lowering funding costs and enhancing liquidity conditions.
AI concerns also drag Bitcoin lower
Exacerbating the pressure on Bitcoin Thursday, broader market worries linked to anxieties over artificial intelligence profitability and waning tech sentiment.
Read More
Third-party advertisement – not an offer or recommendation by Investing.com. See details here or remove ads.
Bitcoin’s drop coincided with a weakening in technology sector stocks after US cloud company Oracle (NYSE:ORCL) issued earnings and revenue guidance below expectations and reported higher capital outlays for AI infrastructure, suggesting significant tech spending is not rapidly translating into profits.
Oracle’s disappointing forecast caused a cooling in equity markets, lowering risk appetite and shifting investor focus from speculative bets to underlying fundamentals.
Crypto Prices Today: Altcoins slump, Cardano sheds over 7%
Most altcoins fell far more sharply than Bitcoin on Thursday.
The world’s second-largest crypto, Ethereum, lost 3.7% to $3,203.92.
The third-largest crypto, XRP, also eased nearly 4% to $2.01.
Solana dropped 6%, while Cardano plunged over 7%, and Polygon slipped 4%.
Among meme tokens, Dogecoin eased nearly 6%, and $TRUMP retreated 4%.
About the Author
