"The bitcoin price fell on Wednesday night into Thursday, even after the U.S. Federal Reserve lowered interest rates, as Fed Chair Jerome Powell signaled a cautious approach heading into 2026. On Wednesday, the Fed cut its benchmark rate by 25 basis points to 3.50%-3.75%, a move widely expected by markets. However, the 9-3 split among Federal Open Market Committee (FOMC) members and Powell's hawkish remarks during the press conference tempered investor enthusiasm for risk assets, including cryptocurrencies."
"The Bitcoin price briefly jumped over $94,000 but then dropped below $90,000 and stabilized around $89,730 at the time of writing. Bitfinex analysts shared with Bitcoin Magazine that the Fed's unexpectedly hawkish tone surprised markets, causing a price reversal and kept risk appetites in check. The Fed's updated "dot plot" shows little consensus for more than a single 25-basis-point cut in 2026, with stronger growth forecasts and shifting tax policy limiting near-term easing."
Fed officials cut the benchmark rate by 25 basis points to 3.50%-3.75% amid a 9-3 FOMC split, with one official preferring a deeper 50-basis-point cut and two opposing any reduction. Chair Jerome Powell signaled a cautious approach into 2026 and the Fed's dot plot indicates little consensus for more than a single 25-basis-point cut next year, as stronger growth forecasts and shifting tax policy limit near-term easing. Bitcoin briefly rose above $94,000 before reversing below $90,000 and settling near $89,730 as markets reacted to the hawkish tone. Analysts attributed the reversal to dampened risk appetite and broader equity weakness, including disappointing tech earnings and Oracle's after-hours decline. Observers also noted increasing institutional adoption and ETF access that contrasts with the recent price pullback.
Read at Bitcoin Magazine
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