Bitcoin fell on Thursday after the Federal Reserve cut interest rates but delivered a message that left traders unsure about the future. The rate cut was expected, but the Fed’s cautious tone and internal disagreements pushed investors away from risky assets.
At 08:50 ET Bitcoin was down 2.2 percent at $90,063. It even dipped below $90,000 earlier in the day.
The Fed lowered rates by 25 basis points on Wednesday. This was the third cut of the year and moved the benchmark rate to between 3.50 percent and 3.75 percent. But the vote inside the Fed was far from united. Two officials did not want a cut at all. One wanted a much larger 50 basis point cut. This split showed that the Fed is unsure about the future path of inflation and how strong the job market really is. That uncertainty made markets nervous.
Jerome Powell said the Fed would follow the data and reminded everyone that policy is not locked into any set plan. New projections showed only one rate cut expected in 2026 which is slower than what investors had hoped for. Clear and steady cuts usually help assets like cryptocurrencies because borrowing gets cheaper and liquidity improves. The hesitation from the Fed had the opposite effect.
Bitcoin also felt pressure from worries across the tech sector. Investor confidence in artificial intelligence profits has been shaky. Oracle reported earnings that missed forecasts and said it would spend more money on AI infrastructure. The company hinted that big AI investments were not turning into profit as quickly as expected. This dragged down tech stocks and lowered overall appetite for risk.
The crypto market followed the same pattern. Ethereum dropped 4.3 percent to $3,192.46. XRP slipped 2.6 percent to $2.0107. Solana fell 4.7 percent. Cardano took one of the biggest hits falling more than 10 percent. Polygon dropped 4.1 percent. Meme coins also sank with Dogecoin down nearly 6 percent and TRUMP down almost 3 percent.
The day showed a clear trend. When confidence in markets weakens both tech stocks and cryptocurrencies feel it fast.
