$BITCOIN Dips as Powell Warns: December Rate Cut “Not Guaranteed”
$BITCOIN fell below $110,000 on Wednesday after Federal Reserve Chair Jerome Powell struck a cautious tone, saying another interest rate cut in December is “not a done deal.” The drop came despite the Fed’s decision to reduce rates by 25 basis points — its second cut of 2025.
Powell’s Caution Surprises Markets
Markets had fully priced in the October rate cut, but Powell’s warning that future moves will “depend on data” caught traders off guard. His comments triggered a sharp reaction across risk assets, sending Bitcoin to an intraday low of $109,800 and U.S. stocks into negative territory, with the Dow Jones slipping nearly 200 points.
Context: The Fed’s Second Cut of 2025
The latest move follows the first rate cut in September, which came after weaker U.S. job data. Investors had expected a steady path of easing into 2026, but Powell’s remarks now suggest the Fed may pause again if the economy shows continued strength.
Market Impact
Bond yields rose as investors scaled back expectations for aggressive rate cuts, while risk assets — including crypto — faced short-term pressure. Despite the dip, Bitcoin remains up over 8% this month, supported by strong ETF inflows and improving on-chain fundamentals.
Bottom Line
Powell’s message reminded investors that the Fed’s path isn’t guaranteed, even in an easing cycle. As one trader summarized:
“Powell didn’t kill the rally — he just reminded everyone the Fed doesn’t do guarantees.”
