Bitcoin Drops Below 90K Even as Dollar Falls After Fed Rate Cut
Crypto sits out a broader market move as traditional assets react to easier financial conditions
The Federal Reserve cut interest rates yesterday, and the reaction across traditional markets looked exactly like the textbooks describe. The United States dollar weakened, precious metals jumped, and Treasury yields moved lower. All of this normally supports risk assets, including bitcoin. Yet the crypto market once again failed to follow the expected script.
Dollar Sinks to a Seven Week Low
The United States dollar index fell to its weakest level in seven weeks. A softer dollar often boosts assets that are priced against it. Silver surged to a new record high near 64 dollars per ounce. Gold also pushed higher. Meanwhile, the yield on the ten year Treasury note slipped from 4.20 percent to 4.12 percent.
Investors across global markets viewed the rate cut as a clear signal that financial conditions will stay supportive through the months ahead.
Crypto Refuses to Join the Rally
Bitcoin briefly rallied above 94,000 dollars right after the Fed announcement. The move lasted only moments. Sellers quickly regained control and pushed the price down to roughly 89,400 dollars. This is a decline of about three percent in the past twenty four hours. Ether dropped even further with a five and a half percent slide. XRP and Solana recorded declines of roughly four percent.
This pattern has become familiar. Traditional risk assets react positively to easier policy while crypto lags behind or moves lower.
Weakness in AI Related Stocks Adds Pressure
Another major theme today is the slump in artificial intelligence stocks. Oracle reported disappointing earnings, triggering a sharp fourteen percent drop in its share price. The decline spilled over into Nvidia, AMD, Broadcom and other semiconductor names. The Nasdaq fell by more than one percent as a result.
Bitcoin mining companies have shifted heavily toward AI infrastructure in recent years. As a result, they traded lower too. Hut 8, Iren, Cipher and Riot all fell between five and six percent.
Major Crypto Related Equities Decline
Strategy, one of the most well known corporate bitcoin holders, dropped more than six percent. Coinbase fell by five percent. Robinhood tumbled by over eight percent after reporting weaker crypto trading volume for November.
Final Thoughts
The macro environment now appears supportive of risk taking. The dollar is falling. Precious metals are rising. Bond yields are cooling. Yet bitcoin and the broader crypto market are still struggling to find upward momentum. The disconnect between traditional markets and crypto continues to widen, and traders are watching closely to see which market becomes the trend setter for the rest of the year.