Bitcoin slips to $90K after brief jump above $94K as Fed’s cautious tone tempers rate-cut optimism

Bitcoin and Ethereum slipped nearly 3% in the past 24 hours as the cautious tone by the US Fed, highlighting upside inflation risks and downside employment risks, dampened hopes for an aggressive rate-cut cycle. The cryptocurrency and Ethereum were trading at $90,154 and $3,193 on Thursday.

In the past 24 hours, Bitcoin went down 2.68%, whereas Ethereum slipped 3.53%. Among the major altcoins, XRP, BNB, Solana, Tron, Dogecoin, Cardano, and Hyperliquid fell over 7% in the past 24 hours. The global crypto market capitalisation edged down 2.88% to $3.06 trillion, according to CoinMarketCap.

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CoinSwitch Markets Desk is of the opinion that with the Fed cutting interest rates by 25 bps, BTC briefly climbed back above $94K. However, the cautious tone from Fed Chair Powell, highlighting upside inflation risks, downside employment risks, and reaffirming that there is “no risk-free path for policy”, dampened hopes for an aggressive rate-cut cycle.

“BTC subsequently pulled back towards $92K with expectations of only one rate cut next year. The Fed will also begin buying $40 billion in short-term Treasury bills from tomorrow. This adds a bit of extra liquidity into the system, which can help stabilise markets and support risk assets. BTC is likely to remain range-bound between $91.7K and $93.5K until a decisive breakout takes place,” the CoinSwitch Markets Desk added.

In the past week, Bitcoin and Ethereum fell 3.57% and 0.39% respectively. Among the major altcoins, XRP, BNB, Solana, Tron, Dogecoin, Cardano, and Hyperliquid fell over 19% in the same period.

Riya Sehgal, Research Analyst, Delta Exchange, said that Bitcoin and major altcoins slipped as traders digested the US Federal Reserve’s third consecutive 25 bps rate cut of 2025 and a cautious macro outlook. “The move, while briefly lifting equities, failed to sustain crypto momentum. Fed Chair Jerome Powell’s mixed guidance, signalling limited room for further easing, kept risk appetite muted.”

Sehgal added that technically, BTC’s failure to reclaim $94,000 shows fading bullish strength, with support at $89,500–$87,500, and ETH’s break below $3,240 trendline support raises the risk of a slide towards $3,150.

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Market perspective

CoinDCX Research Team

Bitcoin again tumbled below $90,000 despite a daily close above $92,000. The global market sentiments continue to remain sceptical as the BTC price volatility has been rising consistently.

Nischal Shetty, Founder, WazirX

The Federal Reserve's dovish tone and rate cut weakened the United States dollar and boosted risk appetite, improving liquidity conditions for traders and institutions. Historically, this environment has nudged Bitcoin and other risk-oriented assets higher as investors seek yield, rotation opportunities, and favourable funding conditions.

At the same time, the rising correlation between crypto and traditional markets indicates that macro shocks and central bank guidance now shape risk allocation across digital assets. Even modest changes in policymakers' language can move Bitcoin and Ethereum order books as traders adjust open interest and recalibrate expectations for funding rates and volatility.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)