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The Federal Reserve just announced its third rate cut of the year, lowering the benchmark range to 3.5%–3.75%. While stocks reacted positively, edging near record highs, $Bitcoin plunged below $90,000 with a wave of liquidations hitting the market.
The mixed reaction highlights a deeper uncertainty: Is the Fed’s shift enough to support a sustained crypto rebound—or will sticky inflation and slow job growth keep markets volatile?
The Fed delivered:
Rate cuts normally support risk assets. But this time, the messaging is mixed:
That’s why Bitcoin dumped below $90,000, triggering heavy long liquidations.
This is not a rejection of crypto—it's a recalibration of expectations. Markets hoped for a more aggressive easing cycle, but Powell confirmed this will be a slow, defensive, controlled pivot, not a 2020-style liquidity flood.
$BTC fell to $90,210 (-2.63% weekly), confirming the market expected more from the Fed.
Rate cuts reduce borrowing costs, but sticky inflation limits the Fed’s ability to ease aggressively.
Result:
➡️ Short-term downside risk
➡️ High volatility
➡️ More liquidations likely around 88K–90K levels
$ETH is down 4.03% in 24h, sitting near $3,192.
Why?
ETH is more sensitive to macro tightening because:
Unless liquidity improves, ETH may continue lagging.
Other altcoins show noticeable drops:
Altcoins always absorb the biggest impact when liquidity is uncertain.
Combine macro uncertainty + elevated funding rates + aggressive leverage → capitulation pockets.
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