Today, Bitcoin’s price jumped past $94,000 after the Federal Reserve announced a 25-basis-point rate reduction.
The Fed has decreased its benchmark interest rate to 3.50%–3.75% to promote maximum employment and manage somewhat elevated inflation in the context of moderate economic growth and dwindling job increases.
This marks the Fed’s third rate cut this year and its first since October. A majority of officials supported this decision, while three opposed it—one suggesting a larger reduction and two opting for no adjustments.
Fed projections for 2026 and 2027 remain conservative, predicting minor rate cuts, a 4.4% unemployment rate, and 2.4% PCE inflation.
The decision from the Fed contributed to Bitcoin’s price rise, though the markets had largely anticipated this cut. BTC briefly reached $94,500, hitting a seven-day peak.
In the past 24 hours, trading volume was approximately $46 billion. The cryptocurrency’s market capitalization is around $1.86 trillion, with a circulating supply just under 20 million BTC, based on data from Bitcoin Magazine Pro.
Bitcoin’s recent surge reflects increasing adoption trends and institutional interest. PNC Bank became the first major U.S. bank to provide direct spot bitcoin trading for eligible Private Bank clients via Coinbase’s infrastructure.
Last week, Bank of America recommended that its wealth management clients allocate 1%–4% of their portfolios to digital assets.
According to Coinbase Institutional, speculative leverage has decreased from 10% to 4%–5% of total market capitalization, indicating a possible end to extreme volatility. Ark Invest CEO Cathie Wood mentioned that the market may have already reached its lows in the four-year cycle.
The Fed’s choice was made against a backdrop of mixed signals from the broader financial markets. The 10-year Treasury yield has risen, reflecting investor anxiety that easing policies now could lead to inflation later.
As of this writing, Bitcoin is trading at approximately $92,505, showing an increase of about 3% over the last 24 hours.
Bitcoin price analysis
In the past week, Bitcoin experienced a rollercoaster ride, dropping to $84,000 before bulls propelled it back to $94,000, only to dip slightly under $88,000, closing the week at $90,429.
The market now identifies critical support at $87,200 and $84,000, with lower support levels around $72,000–$68,000 and $57,700.
Resistance levels are set at $94,000, $101,000, $104,000, and a dense zone between $107,000–$110,000, with momentum likely to wane beyond $96,000.
Historically, rate cuts tend to produce bullish momentum; however, the market may have already anticipated this month’s cut.
Bitcoin is currently down nearly 25% from its all-time highs.
