Bitcoin price skyrocketed past $94,000 yesterday after the Federal Reserve implemented a 25-basis-point rate cut. The Federal Reserve has reduced its benchmark interest rate to a range of 3.50%–3.75%. This move aims to bolster maximum employment while managing inflation, which remains somewhat elevated, all against the backdrop of moderate economic growth and a slowdown in job gains. This marks the Federal Reserve’s third rate cut of the year, and notably, the first since October. Most officials supported the decision, although three expressed dissent — one advocating for a more significant reduction, while two preferred to maintain the status quo. The Federal Reserve’s projections for 2026 and 2027 indicate a conservative outlook, anticipating minor rate cuts, an unemployment rate of 4.4%, and PCE inflation at 2.4%. The rate decision propelled Bitcoin’s price upward, even though the markets had mostly anticipated the cut, with BTC surging to $94,500, marking a seven-day peak.
Trading volume reached approximately $46 billion. The market capitalization of the cryptocurrency is approximately $1.86 trillion, with a circulating supply of nearly 20 million BTC, as reported. Bitcoin’s recent rally showcases the increasing trends of adoption and the growing interest from institutions. PNC Bank has made headlines as the first major U.S. bank to provide direct spot bitcoin trading for eligible Private Bank clients, leveraging the infrastructure of Coinbase. Last week, Bank of America recommended that its wealth management clients consider allocating 1%–4% of their portfolios to digital assets. Coinbase Institutional noted that speculative leverage has decreased from 10% to 4%–5% of total market capitalization, indicating a possible conclusion to extreme volatility. Cathie Wood indicated that the market might have already experienced its lows for the four-year cycle.
The Fed’s decision arrived against a backdrop of mixed signals from the broader financial markets. The 10-year Treasury yield has increased, indicating that investors are worried that current easing policies might lead to inflation in the future. As of this moment, Bitcoin is trading at approximately $92,505, reflecting an increase of about 3% over the past 24 hours. Last week, Bitcoin experienced significant fluctuations, falling to $84,000 before buyers rallied it back to $94,000, then retreating just under $88,000, and ultimately finishing the week at $90,429. The market currently encounters significant support levels at $87,200 and $84,000, with further support zones identified between $72,000 and $68,000, as well as at $57,700.
Resistance levels are identified at $94,000, $101,000, $104,000, and a substantial range between $107,000–$110,000, with momentum expected to decelerate beyond $96,000. Generally, rate cuts tend to generate bullish momentum; however, it appears that the market might have already factored in this month’s rate cut.