Bitcoin slipped about 2% in early Asian trading on Thursday, even as regional stock markets extended the relief rally sparked by the Federal Reserve’s latest rate cut and its upbeat read on the US economy.
The Fed delivered its third straight quarter-point cut, and Chair Jerome Powell signaled that the inflationary impact of tariffs should ease as growth stays solid. He framed the decision as another step toward policy “normalization,” stressing that the central bank aims to support the labor market without allowing inflation to re-accelerate.
Nine out of twelve Fed policymakers backed the cut. New projections show officials still expect just one more reduction in 2026, a reminder that the easing cycle may remain gradual.
Market Snapshot
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Bitcoin: $90,121, down 2.3%
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Ether: $3,224, down 2.4%
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XRP: $2.01, down 3.9%
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Total crypto market cap: $3.16 trillion, down 2.4%
Markets Reassess the 2026 Outlook
Rate-cut expectations shifted after the decision. Futures now imply a 78% chance the Fed holds rates steady at its next meeting—up from around 70% beforehand—as traders temper hopes for deeper easing.
Nic Puckrin, investment analyst and co-founder of The Coin Bureau, said the Fed “wasn’t quite as hawkish as many expected,” allowing markets to breathe easier.
But he added that the outlook still isn’t ideal for crypto bulls.
“The Fed is now expected to cut only once next year—fewer cuts than investors wanted. Today’s announcement alone won’t spark a Santa rally for Bitcoin,” he said. “Without any surprise moves from President Donald Trump, a dead-cat bounce remains a possibility. Risk assets tend to care more about the Fed than anything else.”
Asian Markets Extend Gains as China Moves Diverge
Asian stocks followed Wall Street higher. The S&P 500 rose 0.7% overnight and the Russell 2000 small-cap index jumped 1.3% to a fresh record.
The MSCI Asia Pacific Index climbed roughly 0.5% in early trading, led by gains in technology and financial names.
Greater China markets showed a split in sentiment.
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Shanghai slipped 0.18%
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The Dow Jones Shanghai index eased 0.10%
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Hong Kong’s Hang Seng gained 0.4% as investors rotated back into large caps
For crypto traders, strength in Hong Kong’s equities often mirrors appetite for China-linked growth assets and higher-beta tokens.
Tech sentiment softened in US after-hours trading. Nasdaq 100 futures dipped about 0.3% after Oracle reported weaker-than-expected revenue, dragging its shares lower. Nvidia also pulled back slightly as investors trimmed their most crowded AI positions—names that often sit alongside major crypto holdings in risk-on portfolios.
