Bitcoin price slides lower despite Fed interest rate cut
The price of bitcoin (BTC-USD) and ether (ETH-USD) slipped lower on Thursday despite the US Federal Reserve cutting interest rates, as Fed chair Jerome Powell signalled the central bank will proceed cautiously into 2026.
On Wednesday, the Fed lowered its benchmark rate by 25 basis points to 3.50%–3.75%. While the move was expected, the 9–3 split on the Federal Open Market Committee (FOMC) and Powell’s hawkish tone in yesterday's press conference weighed on crypto sentiment. One official argued for a deeper 50 bps cut, while two voted for no cut at all.
Read more: Crypto live prices
Bitcoin (BTC-USD) fell more than 3% on Thursday, briefly slipping below $90,000 before stabilising at around $90,030, at the time of writing. The pullback comes despite strong inflows into US spot bitcoin exchange-traded funds (ETFs) throughout the week.
Ethereum (ETH-USD) fell 4% to below $3,200, and XRP (XRP-USD) also slid over 4%, struggling to hold the $2.00 level.
Derivatives markets saw heavy losses, with $440m in liquidations in the hours after the Fed's rate decision on Wednesday, according to Coinglass data. Longs accounted for $334.8m, while shorts reached $105m, amid the higher volatility.
Read more: UK’s new tax rules could trigger crypto boom, says Aave CEO
Sygnum Bank chief investment officer Fabian Dori told Yahoo Finance that crypto markets remain highly sensitive to macroeconomic signals.
"The 25 bps cut was largely priced in, but the accompanying narrative matters far more to investors navigating a volatile end to the year," he said. "A ‘hawkish cut’ is not surprising given the Fed’s concern regarding a softening labour market and still-sticky inflation."
He added that broader economic conditions still support long-term crypto adoption. "Liquidity conditions should gradually improve into 2026, and business-cycle indicators continue to point to stable underlying momentum," Dori said.
He noted that bitcoin’s (BTC-USD) recent trading range and sentiment indicate that much of the latest market deleveraging may now have been flushed out. “On-chain fundamentals, institutional allocation frameworks, and regulatory progress continue to provide medium-term tailwinds,” he added. “The key timing variable now is confidence.”
Fed in ‘neutral territory’ after three cuts
Fed Chair Jerome Powell’s press conference after Wednesday’s FOMC meeting struck a mildly dovish tone at points, while still emphasising caution around inflation and labour-market risks.
He said the central bank’s 75 bps of cuts since September place monetary policy within neutral territory, adding that the central bank is “well positioned to wait to see how the economy evolves.”
Content Original Link:
" target="_blank">
