"One reason for Bitcoin's drop after the rate cut is that traders had already fully priced in the cut ahead of the Fed's announcement. "Unlike stocks, bitcoin is already in a bear market, where bad news gets accentuated and good news ignored," Michael Terpin, author of Bitcoin Supercycle, told Fast Company. "Since the 25 basis point cut was already built in, bitcoin traders - particularly ETF investors experiencing their first bear market - were looking for more and pressed the sell button.""
"Some other reasons for the sell off: Trader took a long term look at the macro economic environment ahead and got spooked, plus fear of increased inflation in 2026, according to analysts who spoke to Decrypt. On midday Thursday, at the time of this writing, the digital cryptocurrency ( BTC) was trading down over 2%. It's part of an overall decline in the crypto market that also saw closely watched digital asset XRP ( XRP-USD) fall about 3%, hovering around $2 per token on Thursday,"
Bitcoin dropped below $90,000 after the Federal Reserve cut interest rates by 25 basis points on December 10. Traders had largely priced in the cut, prompting selling pressure, particularly among ETF investors facing their first bear market. Analysts cited macroeconomic concerns and fears of increased inflation in 2026 as additional reasons for the sell-off. Major cryptocurrencies weakened, with BTC down over 2%, XRP falling about 3% near $2, and ETH down over 5% at roughly $3,223. The S&P 500 gained more than 16% year-to-date, marking a notable decoupling between equities and the crypto market.
Read at Fast Company
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