Bitcoin declined on Thursday as traders reacted to the Federal Reserve’s latest rate cut and its cautious policy outlook. Deep divisions among U.S. central bank officials added further uncertainty, weakening expectations for monetary easing next year.
By 01:40 ET (06:40 GMT), Bitcoin was trading 2.5% lower at $90,421.2. The cryptocurrency also briefly slipped below the $90,000 level within the past 24 hours.
Fed cuts rates, but dissent reveals policy uncertainty
The Federal Reserve carried out a widely expected 25-basis-point cut on Wednesday—its third this year—bringing the federal funds rate to a range of 3.50% to 3.75%.
However, disagreement within the Fed highlighted growing uncertainty. Two officials preferred no cut at all, while another argued for a deeper, 50-basis-point reduction. The split vote reflected concerns about the future path of inflation and the strength of the U.S. labor market, dampening risk sentiment.
Fed Chair Jerome Powell stressed that policy would remain “data-dependent” and warned that rates were “not on a preset course.” Updated projections showed only one rate cut expected in 2026—far fewer than markets had anticipated.
Signals of sustained monetary loosening typically support speculative assets like cryptocurrencies by lowering financing costs and improving liquidity. But Wednesday’s tone offered little reassurance.
AI concerns add pressure to Bitcoin
Bitcoin also faced additional downward pressure from broader market worries linked to artificial intelligence profitability and weakening technology sentiment.
The decline came as tech-related equities slipped after U.S. cloud company Oracle (NYSE: ORCL) issued a profit and revenue outlook that missed expectations. Oracle also warned of higher AI-related capital spending, suggesting that heavy investment in AI infrastructure was not yet producing strong returns.
The disappointing forecast cooled risk appetite across markets and shifted investor focus back to fundamentals rather than speculative trades.
Crypto prices today: altcoins drop sharply
Altcoins saw deeper declines than Bitcoin on Thursday.
- Ethereum fell 3.7% to $3,203.92.
- XRP dropped nearly 4% to $2.01.
- Solana slid 6%.
- Cardano plunged more than 7%, while Polygon lost about 4%.
Among meme tokens, Dogecoin fell nearly 6%, and $TRUMP retreated 4%.
