Bitcoin Falls to $108K After Fed Rate Cut, Rebounds on US-China Tariff Deal
Bitcoin initially slid from $113,000 to around $108,000 following the Fed’s 25 bps rate cut to 3.75–4.00% and Chair Powell’s cautious tone. A lack of progress at a Trump-Xi summit in South Korea further pressured risk assets. Soon after, President Trump announced a deal with China to cut tariffs from 57% to 47% and resolve rare earth export issues, pushing Bitcoin back above $110,000. Major altcoins—including XRP, DOGE, ETH, SOL, BNB and ADA—also fell 3–4%. S&P 500 futures dipped while the dollar index held near 99. With quantitative tightening ending on December 1, net liquidity injection and eased trade tensions could boost risk appetite and support Bitcoin and other non-yielding assets.
Bullish
The Fed’s pivot to easier policy—including a rate cut and ending quantitative tightening on December 1—injects net liquidity, lowers funding costs, and bolsters risk appetite, key drivers for Bitcoin’s price. The U.S.-China tariff reduction and rare earth export resolution ease geopolitical uncertainty that had weighed on markets. Combined, these factors support a short-term rebound above $110K and underpin a bullish outlook if dovish guidance and trade détente persist.