Bitcoin Near $92K After Fed’s Third Straight 25bp Cut as Powell Flags Persistent Inflation
The Federal Reserve cut the federal funds rate by 25 basis points to a 3.50%–3.75% policy range — its third consecutive reduction this year (75 bps YTD). The Fed’s dot plot now signals potential additional 25 bp cuts in 2026 and 2027, but Chair Jerome Powell stressed that inflation remains modestly above target and future easing is data-dependent amid internal Fed divisions. Goldman Sachs flagged that the current easing cycle may be at a precautionary endpoint unless labour-market data weakens further. Crypto reaction was immediate but mixed: Bitcoin briefly climbed above $94,000 after the announcement before settling near ~$92,000 as traders reassessed the Fed’s forward guidance and inflation risk. Analysts remain divided — some trim multiyear BTC targets, citing softer macro support, while others point to structural inflows (spot BTC ETFs) and a potential institutional-driven “supercycle.” For traders: expect elevated volatility around Fed windows, possible short-term liquidity-driven BTC rallies following rate cuts, but remain cautious because FOMC reactions this year have been mixed and macro signals could limit sustained upside. Key SEO keywords: Bitcoin, Federal Reserve, rate cut, inflation, BTC price.
Neutral
The Fed’s 25 bp cut is generally supportive for risk assets, and the immediate crypto reaction included a short-lived BTC rally — a typical liquidity response to easing. However, Powell’s emphasis on persistent inflation and the Fed’s data-dependent stance, plus internal dissent and guidance that further cuts are not guaranteed, temper the bullish impulse. Analysts are split: some lower multiyear BTC targets citing weaker macro support, while others point to structural demand from spot BTC ETFs and institutional flows that could sustain higher prices over time. For traders this implies likely short-term volatility (spikes on liquidity events and Fed windows) but uncertain follow-through. Daytraders and momentum traders may find opportunities around Fed announcements and post-cut liquidity; swing and position traders should be cautious until macro data clarifies the path of further easing. Overall, the net near-term price impact on BTC is ambiguous — supportive in the immediate term but constrained by persistent inflation risks and mixed forward guidance.