Bitcoin Slips Below $90,100 as Markets Brace for Fed Rate Call

Key Moments

Fed Uncertainty Weighs on Bitcoin Price Action

Bitcoin traded lower on Tuesday, with sentiment constrained as market participants awaited the start of the Federal Reserve’s latest policy meeting later in the day, where expectations pointed toward a rate cut.

By 01:16 ET (06:16 GMT), the world’s largest cryptocurrency was last changing hands at $90,011.6, down 1.5%. Price action remained contained, with Bitcoin hovering within a relatively narrow band between $90,000 and $92,000 as traders hesitated to commit to new positions.

$BTC is still consolidating around the $90,000 level.

ETF inflows have slowed down, which is the reason Bitcoin is unable to break above the $93,000-$94,000 level.

FOMC meeting is also happening tomorrow and the next move will be dependent on that. pic.twitter.com/bHS2XcVkfg

— Ted (@TedPillows) December 9, 2025

Markets Price In High Odds of a Quarter-Point Cut

Positioning in interest rate derivatives reflected strong conviction that the Fed would opt for a modest easing step at the conclusion of its two-day meeting on Dec. 9-10. Fed funds futures indicated an estimated 87% likelihood of a 25-basis-point reduction.

Support for looser monetary policy has been underpinned by recent U.S. economic readings, including signs of a cooling labor market and inflation that has remained persistent but shown signs of moderating. However, policymakers within the central bank have not been unanimous, with differing views on the forward path for growth and inflation leaving open the possibility that the Fed might choose to keep rates unchanged.

In general, lower policy rates tend to soften the U.S. dollar and diminish yields on cash and fixed-income instruments, which can enhance the relative appeal of non-yielding assets such as Bitcoin. The cryptocurrency’s renewed strength that began at the end of 2024 was closely tied to expectations for an extended phase of Fed easing.

Strategy Expands Its Bitcoin Treasury Position

Strategy (NASDAQ:MSTR), described as the largest publicly listed company with a Bitcoin-focused treasury strategy, announced on Monday that it had added significantly to its holdings. The firm acquired an additional 10,624 BTC, bringing its total stash to approximately 660,624 BTC.

The company said the latest tranche was accumulated between Dec. 1 and Dec. 7 at an average price of about $90,615 per token.

This aggressive accumulation came despite the company facing the risk of removal from major equity benchmarks, including MSCI indexes. Potential exclusion from those benchmarks could trigger sizable outflows from index-linked investors, posing a headwind for Strategy’s equity valuation.

Broader Crypto Market: Altcoins and Meme Tokens Soft

The cautious tone surrounding risk assets was reflected across the broader digital asset complex, with most major altcoins trading weaker on Tuesday.

Ether, the second-largest cryptocurrency by market value, slipped 0.8% to $3,104.92. XRP, ranked third globally, declined 1.4% to $2.05.

Solana and Polygon each retreated by 2%, while Cardano was largely flat.

Meme-linked tokens also edged lower. Both Dogecoin and $TRUMP were down by nearly 1% each.

Crypto Market Snapshot