Bitcoin Falls Below $90,000 as Dollar Hits Seven-Week Low Following Fed Rate Cut
The U.S. dollar index (DXY) declined to a seven-week low after the Federal Reserve cut rates on Wednesday, signaling a move toward looser monetary policy. Precious metals rallied, with silver rising toward a near-record of $64 per ounce, while the 10-year Treasury yield dropped to 4.12% from 4.20%.
Bitcoin briefly surged past $94,000 following the rate cut but then retreated to around $89,400, falling about 3% over the past 24 hours. Other cryptocurrencies also faced declines, with Ether down approximately 5.5% to $3,171.68, and XRP and Solana both dropping roughly 4%.
Despite favorable conditions in other risk assets, cryptocurrencies did not fully participate in the broader market rally associated with the Fed's policy shift. Mining stocks such as Hut 8, Iren, Cipher, and Riot Platforms fell between 5% and 6%. Similarly, MicroStrategy's treasury-related exposure dropped about 6.4%, Coinbase shares declined by around 5%, and Robinhood fell about 8.3% amid weak November crypto trading volumes.
In the equity markets, Oracle's disappointing quarterly earnings weighed on AI-related stocks, causing Oracle to drop about 14%. This decline dragged down Nvidia, AMD, and Broadcom, contributing to a roughly 1.2% decrease in the Nasdaq.
