Bitcoin Price Forecast - BTC-USD Slips Below $90K After Fed Cut Triggers $440M Selloff

Bitcoin (BTC-USD) Falls Below $90,000 as Fed Cut, AI Rout, and Liquidations Hit the Market

Fed’s 25 bps Cut Fails to Support Bitcoin Amid Risk-Off Mood

Bitcoin (BTC-USD) trades near $90,000 after a volatile reaction to the Federal Reserve’s latest 25 basis point rate cut, bringing the target range to 3.50%–3.75%. Despite this being the third cut in 2025, the move failed to lift crypto markets. Bitcoin slipped 2.1% to $90,096, while Ethereum (ETH-USD) dropped 4.3% to $3,196 and XRP (XRP-USD) slid 3.2% to about $2.00. The decline came as traders shifted out of risk assets, even as U.S. equities briefly rallied.

Hawkish Cut and Fed Division Shock the Market

The FOMC’s 9–3 split revealed a policy divide — one member pushed for a deeper 50 bps cut, while two preferred none at all. Fed Chair Jerome Powell described the stance as “neutral,” but his warning about sticky inflation and a weakening labor market turned sentiment bearish. The message was clear: further cuts aren’t guaranteed, and that uncertainty hit liquidity-sensitive assets like Bitcoin hardest.

$440 Million in Crypto Liquidations After the Fed Move

According to Coinglass, about $440 million in crypto positions were wiped out within hours of the rate cut — $334.8 million in longs and $105 million in shorts. The flush reversed Bitcoin’s two-day rebound and erased optimism from ETF inflows earlier in the week. Analysts view this as a leverage reset rather than structural weakness, but volatility remains high.

Oracle’s $190 Crash Adds to Market Fear

Crypto weakness deepened after Oracle (NYSE:ORCL) crashed 16% to around $190, warning that AI infrastructure costs are outpacing returns. The selloff spread across AI-related equities, sending Nvidia (NASDAQ:NVDA) and AMD (NASDAQ:AMD) lower, and hit Bitcoin as risk sentiment deteriorated. BTC’s decline to $90,056 was part of a synchronized global deleveraging move affecting tech and crypto alike.

ETF Inflows Stay Strong Despite Bitcoin Drop

Spot Bitcoin ETFs continue to attract strong inflows, signaling steady institutional demand even amid price weakness. Exchange balances have dropped to multi-month lows, showing accumulation among long-term holders. Sygnum Bank CIO Fabian Dori commented that “liquidity conditions should gradually improve into 2026,” reinforcing confidence that macro tightening is nearing its end.

FOMC Sensitivity: Bitcoin Mirrors Every Policy Shift

Analysis from OneSafe highlights that Bitcoin fell after six of seven FOMC meetings this year, with declines ranging from 6% to 29%. The pattern confirms traders’ hypersensitivity to Fed tone — dovish language triggers rallies, hawkish remarks cause sharp declines. With BTC oscillating between $90,000 and $94,000, the asset reacts instantly to macro guidance, underlining how monetary expectations dominate crypto’s short-term path.

Crypto Payroll Volatility Pushes Companies Toward Stablecoins

Bitcoin’s volatility continues to challenge businesses using it for payroll. Firms paying employees in BTC have seen post-payment value swings of up to 15%, leading many to switch to stablecoins like USDT and USDC. The global stablecoin market is projected to reach $500–750 billion in the next few years, fueled by regulatory clarity and corporate adoption.

Standard Chartered Cuts Year-End Target to $100,000

Standard Chartered revised its 2025 year-end Bitcoin target from $200,000 down to $100,000, citing reduced buying from corporate treasuries. Analyst Geoff Kendrick said “ETF demand will drive the next phase,” as institutional balance-sheet accumulation has slowed. Bitcoin remains capped under $94,000, well below the $126,000 record needed to mark new highs.

Crypto Trails Equities Despite Fed Support

While traditional markets saw moderate strength — the Dow Jones gained 0.6% to 48,150 and the S&P 500 held near 6,857 — Bitcoin lagged. Tony Sycamore of IG Markets noted, “Even though risk assets rallied, crypto didn’t want to know about it.” This divergence reinforces how sentiment in digital assets remains more fragile than in equities.

Liquidity, Confidence, and the Next Phase for Bitcoin

Analysts agree that much of the leveraged excess from October’s selloff has now been cleared. Bitcoin’s medium-term strength depends on ETF inflows and liquidity expansion through 2026. On-chain signals remain supportive: declining exchange reserves, rising hash rate, and sustained institutional buying all suggest a solid base forming below $88,000.

Verdict: Hold Bias, Accumulate Below $88,000, Target $100,000 Mid-2026

Bitcoin remains structurally bullish but short-term constrained by macro caution. Immediate resistance stands between $94,000–$96,000, with support forming at $88,000. Given resilient on-chain data and ETF inflows, a Hold stance is justified, with tactical accumulation favored under $88,000 and upside potential toward $100,000 by mid-2026.

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