Cryptocurrencies decline as the Federal Reserve reduces rates by 25 basis points and initiates short-term Treasury bill purchases aimed at liquidity management, creating market uncertainty.
Bitcoin fell 2.4% to below $90,000 and Ether dropped 4% to $3,190 following the U.S. Federal Reserve's 25 basis point interest rate cut to 3.25% and its announcement of a $40 billion short-term Treasury bill purchase program. The Fed stated the purchases are for liquidity management, not quantitative easing. Market sentiment weakened due to internal divisions among Federal Open Market Committee members and signals of limited future rate cuts through 2026. Analysts noted Bitcoin's inability to break the $94,000 level and declining implied volatility. The CoinDesk 20 Index fell over 4%, reflecting broad risk-off sentiment.