Bitcoin and Altcoins Experience Price Fluctuations Amid Fed Rate Cuts

Bitcoin rebounded to $93,000 after a dip to $89,000 following the Federal Reserve's recent rate cut, but altcoins remained under pressure. According to CoinDesk, altcoins like Cardano and Avalanche saw declines of 6% to 7%, with Ether down 3%.

The Fed's decision also impacted U.S. stocks, with the Nasdaq closing down just 0.25%. Analysts from Cointelegraph noted that while Bitcoin is maturing, liquidity contraction is suppressing its upside potential, as stablecoin inflows to exchanges have dropped significantly.

This liquidity decline affects buying power and is not indicative of strong accumulation. Despite the Fed's widely expected rate cut, traders are observing a classic buy the rumor, sell the news pattern, suggesting that future movements could be tied to market sentiment and regulatory developments, especially as Bitcoin struggles to break above $94,000, indicating a potential bearish trend if it falls below $88,000.