{"id":121633,"date":"2025-12-11T12:18:31","date_gmt":"2025-12-11T08:18:31","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=121633"},"modified":"2025-12-11T12:18:35","modified_gmt":"2025-12-11T08:18:35","slug":"bitcoin-falls-as-fed-cut-disappoints-markets-amid-policy-divisions-and-ai-led-risk-aversion","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/bitcoin-falls-as-fed-cut-disappoints-markets-amid-policy-divisions-and-ai-led-risk-aversion\/12\/11\/market-updates\/","title":{"rendered":"Bitcoin Falls as Fed Cut Disappoints Markets amid Policy Divisions and AI-Led Risk Aversion"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\"><\/h2>\n\n\n\n<p><strong>Bitcoin slipped on Thursday<\/strong>, giving back mid-week gains as investors reacted to a U.S. Federal Reserve rate cut that was overshadowed by a surprisingly <strong>cautious policy outlook<\/strong> and <strong>deep divisions among Fed officials<\/strong>, tempering expectations for meaningful monetary easing in 2026.<\/p>\n\n\n\n<p>The world\u2019s largest cryptocurrency last traded <strong>2.5% lower at $90,421.2<\/strong> by 01:40 ET (06:40 GMT), after briefly dropping below the <strong>$90,000<\/strong> mark in the past 24 hours.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Fed Cut Overshadowed by Dissent and Hawkish Signals<\/strong><\/h3>\n\n\n\n<p>The Fed delivered a widely anticipated <strong>25-basis-point rate cut<\/strong> on Wednesday\u2014its third of the year\u2014bringing the federal funds rate to <strong>3.50%\u20133.75%<\/strong>.<\/p>\n\n\n\n<p>But the decision exposed <strong>rare and significant internal divisions<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Two policymakers preferred no cut<\/strong>,<\/li>\n\n\n\n<li><strong>One pushed for a larger 50-basis-point reduction.<\/strong><\/li>\n<\/ul>\n\n\n\n<p>The split added a layer of uncertainty to the Fed\u2019s inflation outlook and labour-market assessment.<\/p>\n\n\n\n<p>Chair <strong>Jerome Powell<\/strong> stressed that policy remains <strong>data-dependent<\/strong> and \u201c<em>not on a preset course<\/em>.\u201d Updated Fed projections revealed <strong>only one rate cut expected in 2026<\/strong>, sharply below market expectations and signalling a potentially slower easing cycle ahead.<\/p>\n\n\n\n<p>Clearer and more aggressive easing is typically supportive for high-beta, liquidity-sensitive assets like Bitcoin. The lack of such guidance weighed on sentiment.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>AI Sector Concerns Add Pressure<\/strong><\/h3>\n\n\n\n<p>Beyond macro factors, Bitcoin was also dragged lower by broader risk aversion tied to the technology sector.<\/p>\n\n\n\n<p>Investor nerves intensified after <strong>Oracle (NYSE: ORCL)<\/strong> issued a weaker-than-expected profit and revenue outlook and highlighted <strong>rising capital expenditures for AI infrastructure<\/strong>\u2014raising concerns that heavy AI spending isn\u2019t yet producing adequate returns.<\/p>\n\n\n\n<p>Oracle\u2019s report sent ripples through U.S. tech stocks, dampening risk appetite and pressuring speculative assets, including cryptocurrencies.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Crypto Market Today: Altcoins Underperform<\/strong><\/h3>\n\n\n\n<p>Altcoins suffered deeper losses than Bitcoin:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Ethereum<\/strong> fell <strong>3.7%<\/strong> to $3,203.92<\/li>\n\n\n\n<li><strong>XRP<\/strong> dropped <strong>4%<\/strong> to $2.01<\/li>\n\n\n\n<li><strong>Solana<\/strong> tumbled <strong>6%<\/strong><\/li>\n\n\n\n<li><strong>Cardano<\/strong> plunged <strong>over 7%<\/strong><\/li>\n\n\n\n<li><strong>Polygon<\/strong> declined <strong>4%<\/strong><\/li>\n\n\n\n<li>Meme tokens: <strong>Dogecoin<\/strong> \u22126%, <strong>$TRUMP<\/strong> \u22124%<\/li>\n<\/ul>\n\n\n\n<p>The broad-based decline reflects continued fragility in crypto markets as liquidity conditions and macro-policy signals remain in focus.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>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\u2019s largest cryptocurrency last traded 2.5% lower at $90,421.2 by 01:40 ET (06:40 &hellip;<\/p>\n","protected":false},"author":9,"featured_media":54500,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[40,6827,49,36],"tags":[],"class_list":["post-121633","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-cryptocurrencies","category-daily-economic-reports","category-economic-reports","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/121633","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=121633"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/121633\/revisions"}],"predecessor-version":[{"id":121634,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/121633\/revisions\/121634"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/54500"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=121633"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=121633"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=121633"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}