The Bitcoin price drop over the last 24 hours has shaken the cryptocurrency market following the U.S. Federal Reserve’s latest interest rate decision. While Bitcoin briefly rallied toward $95,000, the surge was short-lived as selling pressure pushed the price back near $90,000, triggering losses across major altcoins.
Federal Reserve Rate Cut Triggers Bitcoin Volatility
The U.S. Federal Reserve announced its third interest rate cut of the year, lowering its benchmark rate by 0.25% to a range of 3.50%–3.75%. The announcement sparked immediate volatility in the crypto market. Bitcoin climbed above $94,000 shortly after the news but quickly reversed, falling to around $89,600 before stabilizing near $90,200.
This price movement follows a familiar pattern seen during previous FOMC meetings, where initial optimism is often followed by profit-taking. Although rate cuts are generally viewed as bullish for risk assets, investors remain cautious about Bitcoin’s short-term direction. Bitcoin’s market capitalization currently stands near $1.8 trillion, with its dominance increasing to 57.1%.
Altcoins Slide Following Bitcoin Price Drop
The decline in Bitcoin had a ripple effect across the altcoin market. Cardano (ADA) recorded one of the steepest losses among top cryptocurrencies, falling nearly 10% to trade around $0.42. Other major altcoins, including Avalanche (AVAX), Polkadot (DOT), Internet Computer (ICP), Ethena (ENA), Pump.fun (PUMP), and Dogecoin (DOGE), also declined by 6%–8%.
Despite the broader market weakness, a few cryptocurrencies posted gains. Provenance Blockchain (HASH) rose by approximately 8%, while MemeCore (M) gained close to 4%. Overall, the total cryptocurrency market capitalization dropped by 2.2%, settling at roughly $3.17 trillion.
What’s Next for Bitcoin and the Crypto Market?
Investors are now watching closely to see whether the Federal Reserve’s rate cut will support a sustained recovery in crypto prices. In past cycles, looser monetary policy has benefited digital assets, but the current market environment remains uncertain.
Bank of America Receives Regulatory Clearance to Expand Crypto Trading Services
As traders assess the impact of this latest Bitcoin price drop, the coming days will be critical in determining whether the market can rebound or face further downside. Macro conditions and investor sentiment will continue to play a key role in shaping crypto price movements.
