Bitcoin fell about 2% in early Asian trading on Thursday while regional equities extended the relief rally that followed the Federal Reserve’s latest rate cut and upbeat tone on the US outlook.
The Fed delivered a third straight quarter-point reduction and Chair Jerome Powell said the inflation hit from tariffs should fade as the US economy strengthens.
He described the move as a further step toward policy normalization and stressed that officials want to support jobs without letting price pressures flare again.
Nine of the 12 members on the policy committee backed the cut and fresh projections showed the median official still expecting only one more cut in 2026.
Market snapshot
- Bitcoin: $90,121, down 2.3%
- Ether: $3,224, down 2.4%
- XRP: $2.01, down 3.9%
- Total crypto market cap: $3.16 trillion, down 2.4%
Markets Weigh Limited 2026 Cuts While Risk Appetite Stays Cautious
Futures now imply about a 78% chance the Fed will leave rates unchanged at its next meeting, up from about 70% before the decision, as traders reassess how far this easing cycle can really go.
Nic Puckrin, investment analyst and co-founder of The Coin Bureau, said, the “FOMC decision wasn’t quite as hawkish as many market participants were expecting, so markets are breathing a sigh of relief.”
“However, it is worth noting that the Fed is now expected to cut rates only once next year – fewer cuts than investors were hoping for. This could still change, since next year does bring a historic changing of the guard, but Chair Jerome Powell still remains at the helm for the first three FOMC meetings of 2026,” he added.
“Indeed, today’s announcement is not enough to spark a Santa rally for Bitcoin, and I don’t see any other obvious catalysts from here on, barring any unexpected announcements from President Donald Trump. Even then, a dead cat bounce is a real possibility, as risk assets tend to care more about the Fed than just about anything else.”
Regional Markets Rise While Greater China Shows A Split In Risk Appetite
Asian stocks picked up the baton from Wall Street, where the S&P 500 closed 0.7% higher and the Russell 2000 small cap gauge jumped 1.3% to a record.
The MSCI Asia Pacific Index rose about 0.5% in early trade, with tech and financial shares drawing the bulk of the buying interest.
Moves across Greater China showed a mixed risk appetite. The Shanghai benchmark slipped 0.18% and the Dow Jones Shanghai index eased 0.10%.
Hong Kong’s Hang Seng index advanced 0.4% as investors rotated back into some of the city’s large caps. For crypto traders, the rebound in Hong Kong is a reminder that equity risk sentiment in the city often moves in tandem with demand for China linked growth plays and higher beta tokens.
Tech sentiment turned more cautious in US after hours dealings. Nasdaq 100 futures traded about 0.3% lower in Asian hours after Oracle reported revenue that fell short of expectations, sending its shares sharply down in late trade.
Nvidia also edged lower, a sign that investors are trimming some of the most crowded artificial intelligence wagers that often sit in the same portfolios as major coins.
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