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Bitcoin Price Falls as Federal Reserve Cuts Interest Rates: Are Bears in Control?
Could bears drag Bitcoin's price down? Two experts tell Cryptonews what to expect after the Federal Reserve cut interest rates.
The Federal Reserve has cut rates for the second time this year — but over on the markets, there’s little cause for celebration.
With little economic data to rely on, Jerome Powell has warned that the central bank’s policymakers are struggling to agree on what should happen next.
Because of this, another reduction in December is “not a foregone conclusion,” despite the Fed indicating this was the plan earlier this year.
Bitcoin was down 4% over the past 24 hours at the time of writing, and just about holding above $110,000. Ether’s fallen by 5% too, dipping below $3,900.
Copper’s head of research Fadi Aboualfa told Cryptonews that crypto traders had prepared for today’s Fed meeting ahead of time.
He said the “real signal” now lies in inflows to BTC ETFs, and whether institutional buying holds steady.
Nonetheless, Aboualfa did warn that Bitcoin has the potential to fall further in the short-term. He believes “a quick move” to $110,000 is possible, but noted that “dips keep getting absorbed by account building multi-month positions.”
As previously reported by Cryptonews, questions have been asked about whether continued interest rate cuts are wise — especially given releases from the Bureau of Labor Statistics have been delayed or postponed because of the government shutdown, with no end in sight.
Copper argues that BTC had a “remarkably familiar setup” to October 2024 ahead of the Fed decision — with a “wait-for-catalyst mentality that defined Bitcoin’.
Prior to the FOMC’s meeting, the crypto company had described $114,600 as the price point where a breakout would become real — with “momentum ignition likely” above this level. That hasn’t happened, meaning “the door remains open to another test by the bears
