Bitcoin Price Holds $90k as Markets React to Fed Rate Cut: Will BTC Rally to $100k or Fall to $80k?

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Bitcoin Price Steadies Above $90,000 as Markets React to Fed Rate Cut: What's Next?

Highlights

  • Bitcoin price faces resistance at $91,000, testing support at $88,000.
  • Fed's rate cut triggers bearish trend, impacting the broader crypto market.
  • On-chain data suggests a potential "buy-the-dip" opportunity for traders.

After the Fed’s recent interest rate cut, Bitcoin price has managed to stay above $90,000 on Thursday, despite the bearish market trend.

The total crypto market has reported a 3% decrease in the last 24 hours. This decline follows as traders respond to the third rate drop of the year by the Fed, and huge liquidations by big crypto holders.

Fed Rate Cut Impact on Crypto Markets

The Fed had been expected to be much more dovish, which resulted in a profit-taking phase after Bitcoin briefly surged to $92,000.

Other cryptocurrency markets, including Ethereum, Solana, XRP, ADA, and DOGE, have also been trading in a downtrend after a slight sell-off.

Consequently, the aggregate market capitalization of crypto has declined to 3.07 trillion, as compared to $3.22 trillion.

The issues regarding the direction of Fed monetary policy have escalated after some of the officials dissent on the same.

Also, the news that the Fed would purchase up to 40 billion of treasury bills in the next 30 days has increased more uncertainties. There will be no immediate rate cuts; therefore, the next meeting of FOMC is in January 2026.

Bitcoin Price Faces Resistance, Key Support Levels Ahead

The recent market analysts point out that the attempts of Bitcoin price to break beyond the range of $93,000 to $94,000 have not been successful. Such failure has resulted in more focus on the subsequent levels of important support. The $88,000 to $89,000 bracket that is likely to retest in the near future is notably so.

In case Bitcoin price can hold on to this support zone, it is possible that it will take off again. But in case the price does not stand, the price is expected to further fall to the point of $85,000, analysts predict.

Bitcoin Traders Eye Buy-the-Dip Opportunities as Realized Loss Drops

Recent on-chain activities of Bitcoin show a high potential among traders. Once the realized loss on-chain is less than 37, it is a good indicator of a solid buy-the-dip opportunity. At present, the actual loss is -18% which may indicate that investors may enter the company.

Bitcoin Price Steadies Above $90,000 as Markets React to Fed Rate Cut: What's Next?
Ali charts

The on-chain realized price of Bitcoin and the profit/loss margin of Bitcoin are displayed in a graph provided to crypto analyst Ali.

What’s Next For BTC Price?

As of December 11, 2025, the BTC price is $90,298, showing a slight 2% decrease over the last 24 hours. 

If the Bitcoin price falls below $90,000, further downward pressure is possible. A breakout above $95,000 could signal a potential uptrend as the future Bitcoin outlook remains bullish.

Bitcoin Price Steadies Above $90,000 as Markets React to Fed Rate Cut: What's Next?
Source: BTC/USD 4-hour chart: Tradingview

The indicator of bearish momentum is the MACD (Moving Average Convergence Divergence). The histogram indicates a decreasing buyer strength.

The MACD line is less than the signal line, and it is an indication of further downward pressure. The RSI (Relative Strength Index) stands at 45, which represents a neutral market sentiment.

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Frequently Asked Questions (FAQs)

1. Why is Bitcoin's price declining?

Bitcoin's price is impacted by the Federal Reserve's interest rate cut, leading to a bearish trend in the broader crypto market.

2. What is the effect of the Fed's rate cut on Bitcoin?

The Fed's rate cut triggered profit-taking, causing Bitcoin to struggle at resistance levels and creating a broader market downturn.
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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

BTC

Bitcoin

$90,124.6127 -2.16%

24 Hours volume

$46.02B

Market Cap

$1.8T

Max Supply

21M

Buy $BTC with MEXC
About Author
About Author
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.