Bitcoin today: BTC returns to US$ 90,000 after interest rate cut fails to excite the market

Source: PortaldoBitcoin Original Title: Bitcoin today: BTC returns to US$ 90,000 after rate cut fails to excite the market Original Link: The price of Bitcoin declined on Wednesday afternoon (10) after the US Federal Reserve reduced its base interest rate by 0.25%, while the regulator stated it would resume Treasury bond purchases.

Bitcoin was trading around US$ 92,000 following the Fed’s decision, down 1.4% in the last 24 hours, while Ethereum had increased by 0.6% in the same period, trading just above US$ 3,300.

The outlook turned negative for the two largest cryptocurrencies on Thursday morning (11). Bitcoin’s declines expanded to 2.9%, returning to the level of US$ 90,302. In reais, BTC is quoted at R$ 494,242.

Meanwhile, Ethereum, which was one of the few assets up yesterday, also changed direction and now has a loss of 4.3% in the last 24 hours, trading at US$ 3,195.

Why are cryptocurrencies falling?

The decline of cryptocurrencies after the Fed rate cut, a decision that, in theory, would favor risk assets, can be explained by two factors.

The first is that the market had already priced in the move: on Tuesday, prices were rising, and Bitcoin reached nearly US$ 94,000, reflecting the classic “buy the rumor, sell the news.”

The second reason was the conservative tone of the Fed. In the post-meeting statement, the institution avoided signaling new cuts next year, only stating that it would “carefully evaluate the incoming data, evolving outlooks, and the risk balance.”

It is also worth noting that the Fed’s decision was not unanimous: two members of the Federal Open Market Committee (FOMC) voted to keep rates unchanged, and another advocated for an even larger cut.

The FOMC stated it would resume purchasing short-term Treasury bonds.

“The Committee considers that reserve balances have fallen to broad levels and will begin purchasing short-term Treasury securities as needed to maintain an adequate supply of reserves on an ongoing basis,” said the FOMC in its statement.

Questions about future rate cuts

In the updated economic and interest rate projections, authorities maintained the forecast of two cuts. However, there was less consensus, with one member projecting up to six cuts of 0.25% next year.

“It is not surprising that the US central bank has not committed to lowering borrowing costs in the coming months, considering its ‘concern about weakening labor markets and still persistent inflation,’” said a financial sector analyst in a recent note.

Since the November Consumer Price Index report was postponed to December 18 and last month’s hiring data has not yet been released, Wednesday’s decision was made without some government information due to the shutdown that ended last month.

Meanwhile, the ADP National Employment Report last week indicated that employers eliminated 32,000 jobs last month. Job creation in the second half of 2025 has been weak, the report added, with November marking a particularly weak month for manufacturing.

The Fed’s challenge

The central bank is essentially walking a tightrope: raising rates too quickly could increase inflationary pressures stemming from tariffs, while adjusting rates too slowly could prolong the deterioration of the labor market and contribute to a recession.

Still, the last Fed rate cut was widely expected. Before the meeting, traders priced in an 89% chance that the Fed would cut rates by a quarter of a percentage point for the third consecutive meeting.

Wednesday’s decision came as President Donald Trump considers the next Federal Reserve Chair. The Director of the National Economic Council, Kevin Hassett, is widely viewed as the favorite, but interviews with candidates are just beginning.

In an interview released on Tuesday, the president indicated that the candidate’s willingness to cut rates immediately served as a decisive test. After exercising caution in lowering borrowing costs, Fed Chair Jerome Powell’s term will expire in May.

“A Fed chairman who is decidedly pro-crypto could accelerate blockchain integration into the banking system,” analysts highlighted in a recent note.

Trump pressured Powell to cut rates throughout most of his second term, but the central bank only made its first cut of the year in September after concluding that controlling inflation might be more difficult due to changes in trade and immigration. Another cut was made in October.

On Tuesday, Trump reiterated his frustration with Powell, calling him “a terrible Fed chief,” during a speech on the economy in Pennsylvania.