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Bitcoin slipped on Thursday, giving back mid-week gains as investors reacted to a U.S. Federal Reserve rate cut that was overshadowed by a surprisingly cautious policy outlook and deep divisions among Fed officials, tempering expectations for meaningful monetary easing in 2026.
The world’s largest cryptocurrency last traded 2.5% lower at $90,421.2 by 01:40 ET (06:40 GMT), after briefly dropping below the $90,000 mark in the past 24 hours.
Fed Cut Overshadowed by Dissent and Hawkish Signals
The Fed delivered a widely anticipated 25-basis-point rate cut on Wednesday—its third of the year—bringing the federal funds rate to 3.50%–3.75%.
But the decision exposed rare and significant internal divisions:
- Two policymakers preferred no cut,
- One pushed for a larger 50-basis-point reduction.
The split added a layer of uncertainty to the Fed’s inflation outlook and labour-market assessment.
Chair Jerome Powell stressed that policy remains data-dependent and “not on a preset course.” Updated Fed projections revealed only one rate cut expected in 2026, sharply below market expectations and signalling a potentially slower easing cycle ahead.
Clearer and more aggressive easing is typically supportive for high-beta, liquidity-sensitive assets like Bitcoin. The lack of such guidance weighed on sentiment.
AI Sector Concerns Add Pressure
Beyond macro factors, Bitcoin was also dragged lower by broader risk aversion tied to the technology sector.
Investor nerves intensified after Oracle (NYSE: ORCL) issued a weaker-than-expected profit and revenue outlook and highlighted rising capital expenditures for AI infrastructure—raising concerns that heavy AI spending isn’t yet producing adequate returns.
Oracle’s report sent ripples through U.S. tech stocks, dampening risk appetite and pressuring speculative assets, including cryptocurrencies.
Crypto Market Today: Altcoins Underperform
Altcoins suffered deeper losses than Bitcoin:
- Ethereum fell 3.7% to $3,203.92
- XRP dropped 4% to $2.01
- Solana tumbled 6%
- Cardano plunged over 7%
- Polygon declined 4%
- Meme tokens: Dogecoin −6%, $TRUMP −4%
The broad-based decline reflects continued fragility in crypto markets as liquidity conditions and macro-policy signals remain in focus.
