Bitcoin Price Fights For $90,000 Despite Fed Rate Cuts

Source: CryptoNewsNet Original Title: Bitcoin Price Fights For $90,000 Despite Fed Rate Cuts Original Link: The bitcoin price fell on Wednesday night into Thursday, even after the U.S. Federal Reserve lowered interest rates, as Fed Chair Jerome Powell signaled a cautious approach heading into 2026.

On Wednesday, the Fed cut its benchmark rate by 25 basis points to 3.50%–3.75%, a move widely expected by markets. However, the 9–3 split among Federal Open Market Committee (FOMC) members and Powell’s hawkish remarks during the press conference tempered investor enthusiasm for risk assets, including cryptocurrencies.

One official favored a deeper 50-basis-point cut, while two voted against any reduction.

The Bitcoin price briefly jumped over $94,000 but then dropped below $90,000 and stabilized around $89,730 at the time of writing.

Analysts noted that the Fed’s unexpectedly hawkish tone surprised markets, causing a price reversal and kept risk appetites in check.

The Fed’s updated “dot plot” shows little consensus for more than a single 25-basis-point cut in 2026, with stronger growth forecasts and shifting tax policy limiting near-term easing.

According to market research, there is significant bullish momentum in the bitcoin space—from major payment processors facilitating bitcoin transactions to large institutions now allowing their clients access to bitcoin ETFs to quantitative tightening coming to an end.

Recent price movements show a gap between growing adoption and the price increase that usually comes with higher demand.

Bitcoin Price Decline and Broader Market Pullback

Bitcoin’s recent pullback also reflects broader market concerns. Technology stocks suffered after disappointing earnings and warnings about slower-than-expected AI-related profits.

The Fed’s outlook for 2026 suggests only one additional rate cut, fewer than markets had anticipated. Asian stock markets declined, and U.S. equity futures pointed lower, while European trading remained subdued.

Some analysts revised their year-end Bitcoin forecasts downward, citing a slowdown in corporate treasury buying and reliance on ETF inflows to support future price gains.

Other analysts see a structural shift in Bitcoin’s market cycle, suggesting the traditional four-year pattern has broken. They forecast an elongated bull cycle driven by steady institutional buying, which offsets retail selling, with minimal ETF outflows. These forecasts project a 2026 price target of $150,000 and expect the cycle to peak near $200,000 in 2027, with long-term 2033 targets around $1 million per BTC.

Major financial institutions remain bullish over the next year, projecting a gold-linked, volatility-adjusted Bitcoin target of $170,000 within six to twelve months, factoring in market fluctuations and mining costs.

Analysts say Bitcoin’s decline after the Fed announcement reflects a “sell the fact” dynamic. The market had fully priced in the cut ahead of time. Concerns over political and economic developments in 2026, combined with potential inflation from AI-driven capital expenditure, are weighing on risk sentiment.

Last week, Bitcoin price saw a volatile ride, dipping to $84,000 before bulls pushed it up to $94,000, then dropping slightly below $88,000, and closing the week at $90,429.

The market now faces key support at $87,200 and $84,000, with deeper support zones around $72,000–$68,000 and $57,700.

Resistance levels stand at $94,000, $101,000, $104,000, and a thick zone between $107,000–$110,000, with momentum likely slowing above $96,000.

Typically, rate cuts lead to bullish momentum, but the market may have already priced in this month’s rate cut. The bitcoin price has fallen roughly 28% since its October all-time high.

At the time of publishing, the bitcoin price was at $90,114.