Bitcoin Dips to $109,200 Post-Fed Rate Cut and End of QT
After the Federal Reserve cut rates by 25 basis points and confirmed the end of quantitative tightening, Bitcoin (BTC) slid to $109,200 from an early-week peak of $116,400. The Fed’s dot plot forecasts three additional cuts in 2025, and Goldman Sachs predicts two more 25bp cuts by mid-2026, bringing the funds rate to 3.0–3.25%. Crypto analysis from Hyblock notes a common pattern of Bitcoin dipping after FOMC decisions before rebounding, with order-book buy pressure signalling entry points. Traders now focus on broader headwinds—rising U.S. layoffs, inflation trends, AI sector risks and potential tariff shifts—while awaiting further direction from Fed Chair Jerome Powell’s press conference. The end of quantitative tightening on December 1 could inject fresh liquidity, potentially increasing crypto volatility and trading opportunities.
Neutral
The Fed’s rate cut and the end of quantitative tightening typically support Bitcoin by adding liquidity and lowering financing costs. However, the unexpected 6% drop to $109,200 reflects profit-taking and short-term risk aversion ahead of Fed Chair Powell’s guidance. Historical FOMC reactions show Bitcoin often dips immediately before rebounding, creating potential entry points. Overall, the mix of supportive monetary policy and market uncertainty balances out, suggesting a neutral impact on BTC’s price trajectory.