Why Bitcoin Down 3% Since The Fed Cut Rates Again?
Bitcoin (CRYPTO: BTC) is down 3% over the past week, dashing expectations that the Federal Reserve’s rate cut the week prior would spark a relief rally.
Fed Eases Policy But Signals Caution
According to Wintermute’s latest market update, the rate cut, which came with projections implying just one rate cut across all of 2026, has resulted in uncertainty rather than upside momentum for Bitcoin.
Markets have largely discounted that guidance, continuing to price closer to three cuts next year.
The Fed also announced $40 billion in Treasury bill purchases, effectively ending quantitative tightening, though the gap between signaling and market expectations remains wide.
With the policy decision now behind the market, the catalyst that traders had positioned around faded quickly.
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