Bitcoin Retreats Over 5% to $96,200 after less Fed Rate Cuts expected

• The Federal Reserve broadly supported a 25bps rate cut, with most members advocating a cautious stance on future easing.

• Several policymakers stressed the importance of a measured approach to monetary adjustments over the coming quarters.

• Some noted that halting rate cuts might be necessary if inflation remains elevated or if the economy maintains strong momentum.

• A smaller group of officials suggested a willingness to accelerate rate cuts if inflation trends down or the labor market weakens more than expected.

• Many emphasized the need to carefully evaluate the neutral rate and proceed gradually to avoid errors in policy.

• Risks to inflation appear balanced; however, recent higher-than-anticipated readings require ongoing vigilance.

• Labor market risks were considered manageable, with no signs of a sharp deterioration in conditions.

• While progress on inflation has slowed, the downward trajectory remains intact, with core PCE inflation reported at 2.8% in October.

• The labor market shows slight easing, but unemployment remains low at 4.2%.

• Policymakers anticipate solid GDP growth continuing, although some expressed concern about financial challenges facing lower-income households.

• Plans to continue reducing Treasury and mortgage-backed securities were reaffirmed, maintaining monthly caps of $25B and $35B, respectively.

• Adjustments to the overnight reverse repo (ON RRP) rate were discussed to align it with the lower bound of the federal funds rate range.

• The Fed reiterated its commitment to data-driven decision-making, weighing risks to both inflation and employment.

• The preferred path remains a gradual easing of monetary policy, with flexibility to adjust based on changing economic conditions.

​In the last 24 hours, Bitcoin’s market cap, the leading cryptocurrency globally, dropped to $1.907 trillion. Bitcoin now holds a market dominance of 56.8%, according to CoinMarketCap. During the same period, BTC trading volume jumped 22.6%, reaching $61.6 billion.

The broader crypto market also felt the impact. Ethereum plunged 9%, while other notable altcoins like XRP (-4.3%), BNB (-4.7%), and Dogecoin (-10.7%) followed suit. Overall, the global cryptocurrency market cap declined by 6.15%, landing at $3.36 trillion.

“Bitcoin and other cryptocurrencies faced a significant downturn after stronger-than-expected U.S. economic data emerged,” said Vikram Subburaj, CEO of Giottus. “The 10-year U.S. Treasury yield climbed to 4.68%, nearing multi-year highs, sparking a $504 million liquidation in long positions—the first major leverage reset of the year.”

Bitcoin’s bearish sentiment persists, with current trading levels around $96,500 potentially driving the price down to $95,195. If this support level fails, the next targets are $90,000 and $87,055, according to Sathvik Vishwanath, CEO of Unocoin. A recovery above $99,785, however, could reignite bullish momentum.

​The cryptocurrency space remains highly dynamic, with prices often shifting drastically in short timeframes. Investors must remain vigilant and informed to navigate the market’s volatile nature effectively.