Key Moments
- Bitcoin traded 2.5% lower at $90,421.2 by 01:40 ET (06:40 GMT) and briefly moved below $90,000 in the prior 24 hours.
- The Federal Reserve cut rates by 25 basis points to 3.50%-3.75%, but notable dissents and a cautious outlook tempered expectations for future easing.
- Altcoins underperformed Bitcoin, with Cardano sliding over 7%, Solana dropping 6%, and Ethereum losing 3.7%.
Fed Uncertainty Weighs on Bitcoin
Bitcoin declined on Thursday as traders reassessed the outlook for U.S. monetary policy following a rate cut by the Federal Reserve that was overshadowed by a cautious stance and visible divisions among policymakers.
The world’s largest cryptocurrency was last quoted 2.5% lower at $90,421.2 by 01:40 ET (06:40 GMT), having dropped below the $90,000 level within the past 24 hours.
The Fed on Wednesday implemented a widely expected 25-basis-point reduction, its third cut of the year, bringing the federal funds rate to a target range of 3.50% to 3.75%.
Policy Split Signals Caution on Inflation and Labor Market
The decision was not unanimous. Two Federal Reserve officials favored leaving rates unchanged, while another supported a larger 50-basis-point reduction. This divergence highlighted growing uncertainty inside the central bank regarding the trajectory of inflation and the durability of the U.S. labor market, dampening market sentiment.
Fed Chair Jerome Powell reiterated that policy would remain “data-dependent” and stressed that it was “not on a preset course.” Updated projections indicated only one rate cut projected for 2026, pointing to a slower pace of easing than many investors had anticipated.
Clear and sustained signals of monetary loosening tend to benefit highly speculative assets, including cryptocurrencies, by reducing borrowing costs and supporting liquidity. The mixed message from the Fed reduced that support on Thursday.
AI-Linked Tech Concerns Add Pressure
Bitcoin also faced additional selling pressure from broader market concerns tied to the profitability of artificial intelligence investments and weakening sentiment toward technology stocks.
The latest slide in Bitcoin coincided with softness in tech-related equities after U.S. cloud company Oracle (NYSE:ORCL) issued a profit and revenue outlook that fell short of expectations. The firm also pointed to increased capital expenditures on AI infrastructure, signaling that substantial spending on AI projects was not yet translating into rapid profit growth.
Oracle’s outlook cooled enthusiasm across equity markets, curbing risk appetite and shifting investor attention toward fundamentals rather than speculative positioning.
Altcoins Underperform Bitcoin
Altcoins registered steeper losses than Bitcoin on Thursday, extending the downside pressure across the broader digital asset market.
| Asset | Move | Price / Change |
|---|---|---|
| Bitcoin | Down | 2.5% to $90,421.2 |
| Ethereum (World no.2) | Down | 3.7% to $3,203.92 |
| XRP (World no. 3) | Down | Nearly 4% to $2.01 |
| Solana | Down | 6% |
| Cardano | Down | Over 7% |
| Polygon | Down | 4% |
| Dogecoin | Down | Nearly 6% |
| $TRUMP | Down | 4% |
Ethereum, the second-largest cryptocurrency by market ranking, fell 3.7% to $3,203.92. XRP, ranked third globally, slipped nearly 4% to $2.01.
Solana declined 6%, Cardano dropped more than 7%, and Polygon fell 4%. Among meme-focused tokens, Dogecoin lost nearly 6%, while $TRUMP retreated 4%.
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