Bitcoin dips to $90,000 after Fed's rate cut: Buy now?
What's the story
Bitcoin, the world's largest cryptocurrency, fell by nearly 3% after the US Federal Reserve's cautious stance on inflation and employment. The Fed's tone has tempered expectations of aggressive rate cuts, putting pressure on crypto and major altcoins. Today, Bitcoin was trading at $90,154 while Ethereum was at $3,193. In the last 24 hours alone, Bitcoin has fallen by 2.68% while Ethereum has slipped by a larger margin of 3.53%.
Altcoin impact
Major altcoins also witness significant losses
The Fed's cautious tone has not only affected Bitcoin and Ethereum but also other major altcoins. XRP, BNB, Solana, Tron, Dogecoin, Cardano, and Hyperliquid have all fallen by over 7% in the last 24 hours. According to CoinMarketCap data, the global crypto market capitalization has also dipped by 2.88% to $3.06 trillion amid these developments.
Rate cut effect
Fed's rate cut and its impact on crypto market
The Jerome Powell-led US Federal Reserve's FOMC announced a 25-basis-point reduction in its benchmark interest rate yesterday. The policy rate was lowered to a range of 3.50%-3.75% amid persistent inflation pressures, and a softening labor market in the US economy. This move briefly lifted equities but failed to sustain crypto momentum.
Market analysis
Analysts weigh in on Bitcoin's performance
Riya Sehgal from Delta Exchange observed that Bitcoin's failure to reclaim $94,000 indicates fading bullish strength with support at $89,500-$87,500. Meanwhile, WazirX founder Nischal Shetty believes Bitcoin is poised for upward pressure due to easier liquidity and a softer dollar. However, he cautions its short-term movements remain closely tied to the macro signals and shifting rate expectations.