Bitcoin and Altcoins Face Pressure Amid Fed Policy Changes

Bitcoin rebounded to around $93,000 after experiencing lows post-Federal Reserve's 0.25% interest rate cut, but altcoins struggled to join the recovery. According to CoinDesk, while Bitcoin briefly dipped to $89,000 following the Fed's decision, it managed to stabilize above key support levels.

Ether also saw marginal gains, trading around $3,249, though altcoins like Cardano and Avalanche fell by 6-7%. Analysts noted that the pressure on Bitcoin is diminishing, but the market remains cautious as liquidity from stablecoins is significantly reduced, impacting buying power.

Cointelegraph reported that recent rate cuts typically lead to short-term sell-offs before potential rebounds, suggesting market dynamics could shift as traders adjust to the Fed's policies. However, Bitcoin's performance is hindered by liquidity contraction, with stablecoin inflows dropping nearly 50% since August, leading to a lack of strong accumulation, according to crypto analyst Darkfost.

The overall sentiment in the crypto market reflects a growing disconnect from traditional equities, as traders now focus more on U.S. crypto regulation for future direction rather than solely on Fed policy changes.