Why Has Bitcoin Slipped in Today’s Session?

Market uncertainty persists as internal divisions within the Federal Reserve and an unclear rate path through 2026 weigh on risk assets, including bitcoin.

Bitcoin (BTC) traded below $90,000 following the Fed’s expected 25-basis-point rate cut to 3.25%, down roughly 2.4% since early Asian trading hours, according to CoinDesk data. Ether fell 4% to $3,190, while the CoinDesk 20 Index slid more than 4%.

The subdued reaction reflects market skepticism over the Fed’s messaging, which tempered expectations for future easing. On Wednesday, the central bank also announced it would purchase $40 billion in short-term Treasury bills to manage liquidity in the banking system.

Signs of internal Fed discord are evident. Two FOMC members voted against the cut, and six indicated that a reduction was “not appropriate.” The Fed also signaled only one additional cut in 2026, falling short of market expectations for two to three reductions.

“The Fed is divided, and the market has no clear insight on rates until May 2026, when Chairman Jerome Powell will be replaced,” said Greg Magadini, director of derivatives at Amberdata. He added that the most likely near-term outcome is a down-market “deleveraging” to convince the Fed that lower rates are warranted.

Shiliang Tang, managing partner at Monarq Asset Management, said bitcoin is moving in tandem with equities. “Crypto initially spiked on the news but steadily moved lower with stock futures, with BTC testing but unable to break $94k for the third time in two weeks,” he said, noting that implied volatility continues to drift lower now that the year’s last major catalyst is behind markets.

Liquidity management, not QE

While some in crypto liken the Fed’s reserve program to 2020–21 quantitative easing, analysts stress it is fundamentally different. The current plan focuses on short-term Treasury purchases to address liquidity strains, rather than large-scale balance sheet expansion or long-term yield suppression.

“This is sadly not Lambo QE. More like ‘my Uber is 7 minutes away’ QE,” Steno Research founder Andreas Steno Larsen said on X. Pseudonymous observer EndGame Macro added, “Instead of risking a 2019-style scramble, the Fed is quietly buying a cushion now to ensure the system has enough breathing room through the spring.”