Bitcoin News Today: Bitcoin Slumps Below $90K as Fed's Limited Easing Weighs on Crypto and Tech

Bitcoin briefly surged above $94,000 following the Federal Reserve's 25-basis-point rate cut but quickly retreated below $90,000 amid cautious market sentiment. The U.S. dollar index (DXY) hit a seven-week low, while precious metals like silver reached record levels. Meanwhile, bond yields declined and risk assets struggled to gain traction.

The Fed's decision to ease policy came with a restrained outlook, forecasting only one rate cut in 2026. This limited optimism about future monetary easing dampened enthusiasm for cryptocurrencies and tech stocks alike. Oracle's disappointing quarterly earnings further fueled a risk-off environment, dragging down major tech names and crypto-linked equities.

Bitcoin mining and AI-focused stocks like Hut 8, Iren, and Riot Platforms dropped by 5%–6%, reflecting broader market jitters. Strategy Inc. (MSTR) and Coinbase (COIN) also fell by 6.4% and 5%, respectively, as investors reassessed exposure to crypto-related assets.

Mixed Market Reactions to Fed's Policy Tone

Bitcoin's brief rally above $94,000 was short-lived, as the cryptocurrency slipped back below $90,000 in the hours following the Fed's rate cut. The price drop underscored the market's sensitivity to evolving central bank messaging. . While easier monetary policy typically boosts risk assets, the Fed's subdued 2026 rate cut outlook left investors uncertain about the trajectory of future liquidity injections.

The U.S. dollar weakened significantly, with the DXY index hitting a seven-week low. This dovish shift boosted gold and silver prices, with silver hitting $64 per ounce. Meanwhile, the 10-year Treasury yield fell to 4.12% from 4.20%. These shifts reinforced expectations of a weaker dollar but did not translate into sustained crypto gains according to market analysis.

Geopolitical Tensions and Institutional Investor Caution

Geopolitical tensions, including stalled peace talks between Russia and Ukraine, added to the cautious market mood. U.S. President Donald Trump's frustration with the situation weighed on risk appetite, limiting the upside for Bitcoin and other speculative assets.

Institutional investors also showed mixed signals. While mild inflows into Bitcoin ETFs were reported, these were not enough to offset broader selling pressure in the market.

Standard Chartered cut its Bitcoin price forecast to $100,000 by the end of 2025, citing reduced demand from treasury buyers and a heavy reliance on ETF-driven momentum according to financial analysis. This bearish outlook from a major financial institution added to the uncertainty facing the market.

Regulatory Developments and Market Structure Changes

Regulatory progress continued to shape the crypto landscape, with five major firms—including Ripple, Circle, and Fidelity—receiving conditional approvals to become federally chartered banks. This development could mark a turning point for crypto banking by bringing stablecoin issuers under a more structured regulatory framework. The move reflects a broader shift in U.S. policy toward embracing digital finance.

Simultaneously, the crypto exchange market is expected to grow to $211.57 billion by 2033, driven by rising institutional adoption and demand for secure trading platforms. Decentralized exchanges (DEXs) are leading the charge, fueled by demand for privacy, decentralization, and personal control over assets.

What This Means for Investors

Investors remain cautious as uncertainty over the Fed's policy path lingers. The central bank's internal divisions and unclear rate guidance have created an unpredictable environment for markets. With only one rate cut expected in 2026, the immediate outlook for Bitcoin and other crypto assets remains subdued.

Institutional players are also recalibrating their positions. The recent slump in crypto trading volumes and disappointing results from major firms like Oracle have led to a pullback in speculative capital. This has rippled through the entire market, with Robinhood, Coinbase, and other crypto platforms seeing sharp declines in shares.

Despite these challenges, long-term bullish sentiment persists. The approval of conditional bank charters and the growing institutional interest in crypto suggest that digital assets are increasingly being viewed as legitimate financial instruments. However, market participants will need to weather near-term volatility before these developments translate into sustained gains.