‘Santa rally’ now unlikely as bitcoin slips after Fed delivers ‘hawkish cut’: analysts
Bitcoin fell after the Fed's rate cut was accompanied by cautious guidance, dampening expectations for a year-end rally.Summary
Bitcoin retreated to around $90,000 after the Federal Reserve implemented a widely expected 25 basis-point rate cut, but analysts interpreted the accompanying guidance as cautious, leading to a drop in risk assets. BTC reversed sharply after briefly hitting $94,500 pre-announcement, continuing a trend where most FOMC meetings are followed by a bitcoin decline. Federal Reserve Chair Jerome Powell acknowledged labor market cooling but stressed that future decisions depend heavily on incoming data, noting risks remain tilted toward higher unemployment and inflation. The committee projected only one more cut in 2026, highlighting a divided stance. Analysts viewed the outcome as a calibrated signal rather than a pivot, suggesting the Fed's posture was too cautious to spark a significant year-end "Santa rally." While the Fed's reserve management purchases may offer some liquidity support into early 2026, mixed messaging and a high bar for easing suggest limited upside potential for new all-time highs soon. Despite solid institutional demand reflected in steady spot Bitcoin ETF inflows, price action remained muted as retail trimming created a tug-of-war, keeping BTC range-bound.
(Source：The Block)