Crypto Markets Jump After Fed Delivers Expected Rate Cut
MarketDash
Bitcoin briefly touched $94,000 following the Federal Reserve's 25 basis point interest rate cut, while traders warn the initial reaction may not be the real move yet.
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The Federal Reserve did exactly what everyone expected—cut rates by 25 basis points—and crypto markets responded with a quick spike. Bitcoin briefly touched $94,000 before settling back, while other major digital assets posted similar gains of around 1%.
The volatility wasn't kind to everyone. According to Coinglass data, 100,951 traders were liquidated in the past 24 hours for $196.69 million. That's what happens when leverage meets a Fed announcement. Meanwhile, top gainers over the period included MemeCore, Monero and Sei.
What Traders Are Saying
Crypto trader Michael van de Poppe said traders are sticking to the standard FOMC playbook—avoid leverage, avoid trading the announcement, expect the first move to be a head-fake, and wait for the real trend to form in the following days.
He added that Ethereum continues to outperform Bitcoin, a dynamic he expects to continue, especially with volatility rising.
Daan Crypto Trades noted that pre-FOMC liquidity games are in full swing. He expects both local highs and lows to be swept in the hours leading into the decision, calling this an environment where most traders get chopped up. His advice: sit back, let volatility play out, and reassess once the market shows its direction.
KillaXBT pointed out that when Bitcoin posts a red quarterly close, the next quarter often wicks below the previous low before reversing higher. If this pattern repeats, Q1 could briefly dip below $80,000, potentially toward $74,000, before resuming an upward move.
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