Bitcoin tumbles to $109,000 after the Fed cuts rates and ends Quantitative Tightening. Easing is yet to spark a surge.
Context in a Nutshell
The narrative just shifted. Bitcoin fell back into the $109,000 zone after the Fed’s surprise policy tilt; ease now, but structural risk sideways. The question: Did the market price in too much too early?
What You Should Know
Bitcoin dropped to around $109,200 following the Fed’s 25 basis-point interest-rate cut and its announcement to halt quantitative tightening (QT).
The Fed cut rates and signaled the halt of its balance-sheet runoff, altering the monetary-policy backdrop.
The decline suggests that even easing policy can prompt risk-asset pullbacks when expectations and structure misalign.
Why Does This Matter?
In crypto, the broader macroeconomic regime sets the floor, and not the narrative. A policy pivot can prompt a rally or a retracement, depending on how much of it is already priced in. For Bitcoin, this serves as a reminder: momentum is fragile until structure confirms it. Traders and allocators alike must pay attention to how markets absorb policy, not just what policies say.
The Fed’s turn is real. Bitcoin’s reaction is important. The next move depends on whether this is a temporary pullback or the start of a new trend. Keep your eyes on structure, flow, and conviction.