Copyright Benzinga
Bitcoin (CRYPTO: BTC) is trading below $108,000 after the Federal Reserve's 25-basis-point rate cut failed to lift markets, with charts pointing to deeper losses. Fed Rate Cut Fails To Wake Up Bitcoin Price The Federal Reserve reduced interest rates by 25 basis points to a range of 3.75%–4.00%, marking its first cut in months. The move, widely expected, reflected policymakers attempt to balance slowing inflation with emerging economic weakness. Despite the policy shift, markets barely reacted, as traders had already priced in the decision ahead of Wednesday's announcement. Analysts said the muted response stemmed from expectations that the Fed would act cautiously through year-end. U.S. equities traded mixed, with the S&P 500 (NYSE:SPY) flat at 6,890, Dow Jones slipping 0.16%, and the Nasdaq Composite up 0.55%. 10-year Treasury yields edged to 4.10% and the global crypto market cap fell 4.2% to $3.64 trillion. Powell's Warning Rattles Markets And Crypto Traders Following the meeting, Fed Chair Jerome Powell emphasized that another rate cut in December "is not a foregone conclusion," highlighting deep divisions within the Federal Open Market Committee. In a post on X, Quinn Thompson, chief investment officer at Lekker Capital, described Powell's language as "political posturing" aimed at pushing the administration to reopen the government. Thompson argued that Powell's message effectively warned that a continued shutdown could block key economic data and hinder future rate decisions. The shift in tone rattled markets briefly, with Treasury yields climbing and the probability of a December cut falling from near certainty to roughly even odds. Crypto assets mirrored the cautious sentiment, with Ethereum (CRYPTO: ETH) down to $3,773 and XRP (CRYPTO: XRP) slipping to $2.45. Liquidity Shift Could Be Hidden Bullish Fuel For Bitcoin Thompson said Powell's comments should not be viewed as a hawkish turn but as leverage in a political negotiation. He noted that the Fed will halt its quantitative tightening program on Dec. 1, ending the runoff of Treasury and mortgage holdings. Instead, the central bank will reinvest maturing securities into Treasury bills, which he framed as "incrementally liquidity positive." Analysts see that as a supportive signal for risk assets, especially cryptocurrencies, which tend to benefit from easier dollar liquidity. The mix of cooling inflation, labor-market softness, and a pause in balance-sheet contraction creates an environment historically favorable for digital assets. Bitcoin Price Breakdown Puts $93,000 Support In The Spotlight BTC Price Action (Source: TradingView) On the charts, bitcoin has slipped under $108,000, breaking down from a multi-week symmetrical triangle. The rejection near the EMA cluster between $111,700 and $112,900 confirmed selling pressure. Momentum remains weak, with the RSI near 30, suggesting the asset is approaching oversold conditions but not yet primed for reversal. The next major support sits at $102,000–$100,000, followed by a critical zone around $93,000–$92,000 — the final major base from August. A failure to defend this area could expose Bitcoin to deeper losses toward $90,000. Bulls would need a recovery above $112,000 to neutralize the breakdown and restore short-term momentum. Read Next: Trump Concludes ‘Amazing’ Meeting With Xi Jinping, Teases ‘Pretty Soon’ Trade Deal Image: Shutterstock
