Quick overview

Live BTC/USD Chart

---

Bitcoin fell to $107,800 after Federal Reserve Chair Jerome Powell signaled that further rate cuts might not happen in December.

 

The price has since stabilized around $109K. The decline followed the central bank’s decision to reduce its benchmark interest rate by 0.25 percentage points to a target range of 3.75% to 4%. This was the second cut of 2025 after a September move and ended a prolonged period of rate stability.

The policy change aims to lower borrowing costs and stimulate the economy. However, Powell’s comments that additional cuts this year are not guaranteed caused a sell-off in riskier assets. Bitcoin was trading near $116,000 on Monday and briefly dropped below $111,000 early Tuesday before the announcement. As Powell spoke, the price dropped again after a brief rise in response.

He emphasized that policymakers have “not decided about December” but noted that inflation, excluding tariffs, is “not so far” from the 2 percent target. Powell observed that during today’s meeting, officials had “strongly differing views.” Markets significantly lowered expectations for another rate cut this year after his remarks. CME data, along with predictions from Kalshi and Polymarket, now indicate a 71% chance of a December cut, down from about 90% earlier in the day.

The two-year Treasury yield increased by 9 basis points as traders reassessed the Fed’s upcoming policy. Historically, changes in monetary policy have caused sharp reactions in Bitcoin.

Bitcoin dropped nearly 39% before recovering after the Fed’s emergency rate cuts in March 2020. There was little market reaction when the Fed cut in September 2025, suggesting that expectations were already priced in..