Bitcoin (BTC) surged past the $94,000 mark before swiftly pulling back after Federal Reserve Chair Jerome Powell delivered a mixed message following the central bank’s decision to reduce interest rates by 25 basis points on Wednesday.
Throughout most of the day, BTC hovered around $92,000 but then jumped to approximately $94,400 during Powell’s post-meeting press conference. He highlighted concerns about a potentially weaker labor market than expected but later tempered enthusiasm by stating that the fight against high inflation is far from over, causing Bitcoin to relinquish much of its gains.
At present, Bitcoin is trading near $93,500—up roughly 0.5% in the last 24 hours. Meanwhile, Ether (ETH) has maintained its recent upward momentum by staying above $3,400 and gaining about 2.4% over the same timeframe.
Powell explained that current Fed policy sits “within a range of plausible estimates of neutral,” positioning them well to decide on any further adjustments in both timing and magnitude.
“We are prepared to adopt a wait-and-see approach regarding additional rate cuts,” he added.
The Fed chair also noted that numerous data points will emerge before their next meeting in January which will heavily influence future policy decisions.
In addition to lowering its federal funds rate target by 25 basis points earlier in the day, the New York Federal Reserve announced plans to start purchasing short-term Treasury bills along with Treasury securities maturing within three years if necessary. This initiative aims for around $40 billion worth of purchases over one month starting Friday—a move designed to ease financial conditions without signaling an extensive quantitative easing program.
Powell mentioned these asset purchases would remain “elevated” for several months ahead—a notable shift from recent years when the Fed was actively shrinking its balance sheet following pandemic-era expansions.
Expert Opinions
“The Fed clarified that this rate cut does not signal an aggressive easing cycle; instead future actions will largely depend on incoming inflation and labor market data,” said Daniela Hathorn, senior market analyst at Capital.com.
“Although policymakers agreed modest easing was necessary amid uneven post-pandemic economic signals and slowing momentum indicators, their updated communication emphasized caution moving forward,” she added.
“The close vote—with two FOMC members opposing any change—reflects uncertainty due primarily to incomplete data,” explained Brian Coulton from Fitch Ratings. The slight uptick in core inflation recently likely convinced committee members another cut was warranted while keeping rates somewhat above neutral levels.”
Coulton predicted it unlikely that rates will continue dropping at consecutive meetings; he expects only two more reductions through June 2026 bringing upper bound federal funds rate down to about 3.25%.
“By balancing indications of pausing rate cuts alongside restarting Treasury purchases,” David Hernandez from crypto investment firm 21Shares observed “Powell is carefully navigating between fulfilling dual mandates.”
Regarding Bitcoin’s price action beyond current ranges: Hernandez noted fresh buying pressure is needed “to overcome concentrated short-selling resistance near $94,500,” where Wednesday’s rally stalled abruptly.”
“If inflows into spot ETFs increase as anticipated with falling capital costs—that could ignite renewed momentum pushing Bitcoin past key psychological resistance at $100K,” he concluded.”
Bitcoin (BTC) surged past the $94,000 mark before swiftly pulling back after Federal Reserve Chair Jerome Powell delivered a mixed message following the central bank’s decision to reduce interest rates by 25 basis points on Wednesday.
Throughout most of the day, BTC hovered around $92,000 but then jumped to approximately $94,400 during Powell’s post-meeting press conference.
He highlighted concerns about a potentially weaker labor market than expected but later tempered enthusiasm by stating that ifight against high inflation is far from over,
causing Bitcoin
to relinquish much of its gains.
At present,á;Bitcoin is trading near &$93,500-up roughly %.
Meanwhile,Ether(ETH)& has maintained recent upward momentum staying above €,3400and gainingabout2-4overthesametimeframe.