Bitcoin fell on Thursday as investors reacted to the Federal Reserve's interest rate cut, which dampened expectations for monetary easing next year.
Bitcoin fell on Thursday as investors reacted to a Federal Reserve rate cut that was overshadowed by a cautious policy outlook and deep divisions among U.S. central bankers, clouding expectations for monetary easing next year.
The world’s largest cryptocurrency last traded 2.5% lower at $90,421.2 by 01:40 ET (06:40 GMT). It slipped below $90,000 in the last 24 hours.
Fed cuts rates, but several policymakers dissent
The Fed delivered a widely anticipated 25-basis-point cut on Wednesday, its third this year, bringing the benchmark federal funds rate to a range of 3.50% to 3.75%.
But several policymakers dissented, with two members preferring no reduction and another advocating a larger, 50-basis-point move. The split underscored growing uncertainty within the central bank about the inflation path and resilience of the U.S. labor market, dampening investor confidence.
Chair Jerome Powell said the Fed would remain “data-dependent” and emphasised that policy was “not on a preset course.” Updated projections showed only one rate cut pencilled in for 2026, a slower easing trajectory than markets had priced in.
Clearer signals of sustained monetary loosening support highly speculative assets such as cryptocurrencies by lowering funding costs and improving liquidity conditions.
AI worries also drag Bitcoin
Compounding pressure on Bitcoin on Thursday were broader market jitters tied to concerns about artificial intelligence profitability and faltering technology sentiment.
Bitcoin’s slide coincided with weaker tech-linked stocks after U.S. cloud firm Oracle (NYSE:ORCL) reported a profit and revenue outlook that missed forecasts and flagged higher capital spending on AI infrastructure, suggesting that hefty tech outlays were not translating quickly into profits.
Oracle’s disappointing outlook sent a chill through equity markets, weighing on risk appetite and turning investor focus toward fundamentals over speculative bets.
Crypto price today: altcoins slip, Cardano drops over 7%
Most altcoins fell much more sharply than Bitcoin on Thursday.
World no.2 crypto Ethereum lost 3.7% to $3,203.92.
World no. 3 crypto XRP also declined nearly 4% to $2.01.
Solana tumbled 6%, while Cardano plunged over 7%, and Polygon declined 4%.
Among meme tokens, Dogecoin declined nearly 6% and $TRUMP retreated 4%.