The cryptocurrency market is experiencing a pullback today, with Bitcoin (BTC) trading around $90,000 (down ~2.8% in the past 24 hours). So, why is crypto down today? Post rate cut, people usually expect a relief rally, but even that didn’t happen.
The U.S. Federal Reserve cut rates by 25 basis points yesterday, but Chair Jerome Powell’s tone emphasized inflation risks and slower future easing. Markets priced in the cut but reacted negatively to the lack of dovish hints, leading to a “sell the news” event. BTC briefly spiked above $94K post-announcement before sliding back.
- June 18: Paused. -6.36% Dump.
- July 30: Paused. -5.62% Dump.
- Sept 17: Cut 25bps. -8.10% Dump.
- Oct 29: Cut 25bps. -12.04% Dump.
This is how Bitcoin reacted to the last four FOMC meetings. Notice the pattern here. All of them turned bearish in the short term, but not long after the September 17 meeting, Bitcoin went on to break its all-time high.
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Crypto Is Down Today, Yet Here Is Why It Can Go Even Lower
Crypto is increasingly correlated with stocks (e.g., Nasdaq down moderately today). AI stock valuations are under scrutiny for a potential bubble, pulling capital from risk assets. Trump’s tariff threats earlier this year already caused a $19B leveraged wipeout in October, and year-end deleveraging is in full swing.
This resulted in Spot trading volumes having crashed 66% since January (per Kaiko data), with market depth down 30%. ETF inflows are fading ($7.2B net outflows from BTC/ETH funds since October), and retail interest (via Google Trends) is at record lows.
Thin liquidity means small sells snowball into bigger moves. With that, MicroStrategy (the world’s largest corporate BTC holder) slashed its 2025 price targets to $85K–$110K amid the slide, spooking holders.
This is how Bitcoin chart looked in the last 7 days. For the average holder, this is nasty price action. BTC is testing the $90K support (near its 20-day EMA), forming a potential bear flag. BTC/ETH options expire today, leading to choppy, range-bound trading until after the U.S. market close.
So Crypto Is Done For Good?
This isn’t isolated. December has been brutal, with BTC logging its worst monthly drop since 2021 (~$18K loss in November alone). Yet, historical patterns show December averages +9.7% gains for BTC, and analysts see stabilization ahead of a 2026 rally.
If you’re holding, this looks like late-cycle exhaustion rather than a structural crash. Watch $90K BTC support; a break could test $83K–$86K lows. The Altcoin Season Index at 17 screams “oversold” for alts. Always DYOR, markets can flip fast. 
(Source: Klarck on X)
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Bitcoin Hyper ($HYPER) Stays On The Green As It Supercharges Bitcoin Speed
Bitcoin’s biggest strength has always been security, but speed is where it struggles the most. That is exactly what Bitcoin Hyper ($HYPER) is trying to fix. Bitcoin Hyper is a new Layer 2 built using Solana-style tech to remove Bitcoin’s biggest bottlenecks.
The goal is simple: faster transactions, ultra-low fees, and real access to DeFi, meme coins, NFTs, and more, all while staying connected to Bitcoin. At the center of it all is the Hyper Bridge. It lets BTC holders move their Bitcoin onto the Hyper L2 safely and seamlessly. Once bridged, users receive a 1:1 version on the Layer 2 with near instant finality.
This finally gives Bitcoin users access to things they could not really use before, like staking, fast payments, and higher yield opportunities.
Investors are already buying into the idea. Bitcoin Hyper has raised close to $30 million so far from early backers who believe this could be the upgrade Bitcoin has been missing for years.
As more wallets and platforms start integrating Hyper L2, demand for the $HYPER token is expected to grow alongside the ecosystem.
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Key Takeaways
- BTC keeps dumping after FOMC cuts, but history shows these post-Fed selloffs often come before major upside.
- Liquidity is thin, and sentiment is washed out, which usually sets the stage for violent reversals.
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