Bitcoin Stumbles Back Below $90K as Dollar Sinks to 7-Week Low After Fed Rate Cut
Despite a Fed rate cut weakening the dollar and boosting other assets, Bitcoin fell below $90K amid broader tech sector declines.Summary
Following the Federal Reserve's rate cut, which typically signals easier monetary policy leading to a weaker U.S. dollar, lower bond yields, and rising precious metals, Bitcoin failed to rally. While the DXY dollar index hit a seven-week low and silver reached a record high, Bitcoin briefly surpassed $94,000 before slumping back to $89,400, marking a 3% loss over 24 hours, with Ether and other cryptos also declining.
This bearish trend in crypto is potentially exacerbated by negative sentiment in the tech sector, triggered by Oracle's disappointing quarterly earnings. This downturn affected major tech names like Nvidia and AMD, pulling down the Nasdaq. Consequently, Bitcoin mining stocks, many of which have diversified into AI infrastructure, also saw losses, along with major crypto players like MicroStrategy and Coinbase.
(Source：CoinDesk)