Key Points
- Bitcoin’s price fell below $90,000, while the U.S. stock market rallied.
- The drop came after the Federal Reserve cut interest rates, a move that usually helps risk assets.
- The opposing moves show that crypto is “decoupling” from traditional financial markets.
- The crypto market is facing heavy selling pressure, despite some large, recent purchases by institutional investors.
Bitcoin took a tumble on Thursday, sliding below the $90,000 mark even as other financial markets celebrated an interest rate cut from the U.S. Federal Reserve. The move highlights a growing disconnect between cryptocurrency and traditional assets like stocks.
While the Fed’s decision and optimistic economic outlook sent Wall Street soaring, with the S&P 500 hitting a near-record high, the good mood did not spill over into the crypto world. Bitcoin, the original cryptocurrency, fell as much as 3.2%, while other major tokens, such as Ether, also saw significant declines.
The crypto market has been on shaky ground for weeks, still recovering from a major selloff in October that wiped out billions in risky bets. This latest dip confirms that the market is struggling with heavy selling pressure. One analyst called it a “clear decoupling,” noting that crypto is now moving independently of broader market trends.
The situation is sending mixed signals to traders. On one hand, a huge amount of money recently flowed into Bitcoin ETFs, and crypto bull Michael Saylor’s company, Strategy Inc., just bought nearly a billion dollars’ worth of the token.
However, even that massive purchase wasn’t enough to prop up the price, suggesting that sellers are currently in control. More traders are now betting that prices will continue to fall.
Analysts are now closely watching whether Bitcoin can hold above key support levels, with some warning of a potential slide back to recent lows around $80,500.
