Key points:
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Bitcoin sales accelerated after the Federal Reserve cut rates by 25 basis points.
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Weakness in the crypto shows traders looking at macroeconomic headwinds such as a weakening job market and inflation, despite the belief that interest rate cuts will continue into 2026.
Bitcoin (BTC) The price fell to $ 109,200 ahead of the US Federal Reserve’s decision to cut interest rates by 25 basis points. While traders can A level of risk-off is expected Ahead of Fed Chair Jerome Powell’s announcement, BTC’s 6% fall from Monday’s rally to $116,400 may be sharper than expected, especially considering that the consensus among analysts is a 25 basis point rate cut.
The Fed’s dot plot currently shows a baseline of three cuts in 2025. Analysts at Goldman Sachs are already predicting at least two more 25 basis point cuts through March and June of 2026, which would put the Fed’s benchmark in the 3% to 3.25% range, so with that in mind, Bitcoin’s near-term price expectations are contrary to traders’ expectations.
Analysts at Hyblock, a crypto analytics company, said:
“Recent history has shown that the FOMC leads to a price drop in BTC, followed by a move. This was the case in both the no rate change and rate cut (last one) scenarios. If the Price dips post-fomc and signs of bullish confluence emerge, such as bid-heavy orderbook, it will likely present good opportunities for investors.”
Given that the market consensus is leaning toward rate cuts for the foreseeable future, investors’ focus has shifted to a “what’s next, beyond the cuts” point of view. Growing job losses in the US, the longer-term effects of President Trump’s Tariff war, and whether the artificial intelligence sector is in a speculative bubble or an industry sitting on sound foundations are all factors that traders have at the front of their minds.
Related: Price predictions 10/29: BTC, ETH, BNB, XRP, SOL, DOGE, ADA, Hype, Link, BCH
Traders are looking for these factors to be addressed during Powell’s FOMC presser on Wednesday, and they are likely to affect Bitcoin’s price action more than today’s interest rate cut, which is essentially priced in, given the 100% consensus that a 0.25% cut is on the way.
A notable addition to the FOMC statement was the confirmation that the Fed will stop shrinking its balance sheet on December 1, marking the end of quantitative tightening.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making decisions.
