Bitcoin Drops to $109K as Powell Doubts December Rate Cut
Bitcoin dropped over 2% to around $109,000 after US Fed Chair Jerome Powell signalled that a December rate cut is not assured. The Federal Open Market Committee had earlier cut its benchmark rate by 25 basis points to 3.75–4.00%, but Powell’s cautious tone cooled market expectations. Bitcoin’s slide dragged the broader crypto market lower: Ethereum (ETH) slid about 1.9% to $3,900, XRP eased 2.7% to $2.53 and Solana (SOL) fell 1.0% to $192. Meanwhile, rising 10-year Treasury yields and a stronger dollar compounded the selling pressure. With quantitative tightening due to end on December 1 and the odds of a December rate cut trimmed to around 69% by CME FedWatch, traders are turning their attention to the upcoming US-China summit for fresh market catalysts.
Bearish
Powell’s indication that a December rate cut is not guaranteed has dampened risk-asset sentiment and triggered a sell-off in Bitcoin. The slide to around $109,000 reflects heightened uncertainty over US monetary policy, and the accompanying rise in Treasury yields and dollar strength adds further pressure. While the end of quantitative tightening and a Fed rate cut provide some medium-term support, traders remain cautious ahead of key macro events. In the short term, this uncertainty typically drives bearish price action, though a positive outcome from the upcoming US-China summit could mitigate selling pressure later.