Fed Delivers Expected 25 bps Rate Cut; Bitcoin Holds Lower as Markets Eye Powell

Bitcoin extended its decline on Wednesday, trading near $111,700, down roughly 3% over the past 24 hours, as traders digested the U.S. Federal Reserve’s widely anticipated 25 basis point interest rate cut.

The Fed lowered its benchmark rate range to 3.75%–4.00% and confirmed plans to end its balance sheet runoff on December 1, effectively concluding its quantitative tightening program. The move matched market expectations and signals a continued effort to balance inflation risks with slowing economic growth.

“Job gains have slowed this year, and the unemployment rate has edged up but remained low through August,” the policy statement said. “Inflation has moved up since earlier in the year and remains somewhat elevated.”

The decision wasn’t unanimous. Kansas City Fed President Jeffrey Schmid dissented, preferring to hold rates steady, while Fed Governor Stephen Miran again voted for a deeper, 50 basis point reduction.

Following the announcement, bitcoin BTC hovered near session lows at $111,700, having earlier touched $110,040.31. The cryptocurrency’s weakness mirrored a cautious tone across risk assets ahead of Fed Chair Jerome Powell’s press conference.

In traditional markets, U.S. equities held modest gains, with the Nasdaq Composite rising 0.5% to lead major indexes. The 10-year Treasury yield added three basis points to 4.02%, while the U.S. dollar firmed against major peers.

Traders now turn their focus to Powell’s remarks at 2:30 p.m. ET, seeking guidance on the Fed’s outlook for the economy and future rate adjustments. Market pricing currently implies another 25 basis point cut at the central bank’s final meeting of 2025 in December.