Bitcoin is trading near $93,000 after a volatile hour following the U.S. Federal Reserve’s decision to cut interest rates by 25 basis points on Wednesday. The move marks the Fed’s third rate cut of 2025 and brings the federal funds target range to 3.5%–3.75%.
The price of Ethereum also showed a brief increase, climbing above $3,400 before stabilizing just below that level. Both assets remain up over the past hour, although they have experienced significant swings. Despite the upward move, many major cryptocurrencies remain slightly lower on a 24-hour basis.
Read also: Is the Bitcoin 4-Year Cycle About to Break?
Rate Cut in Line With Expectations
The rate cut had been widely anticipated by markets. The Fed’s statement noted concerns over a softening labor market and inflation that remains above target, but the central bank did not signal a firm commitment to further cuts. The decision was split: two members dissented in favor of holding rates steady, while one supported a larger 50bp cut.
In addition to the rate change, the Fed announced it would resume short-term Treasury purchases to maintain liquidity in the banking system.
Read also: How Interest Rates Impact Bitcoin: Exploring the Correlation
Labor Market and Market Response
Yesterday, new government data showed job openings rose slightly in October, while layoffs also increased. The mixed signals contributed to cautious optimism in broader markets. Following the Fed’s decision, U.S. equity indices rose modestly, with the Dow Jones up around 0.8%.
Cryptocurrencies, which are often sensitive to interest rate decisions and broader market liquidity, responded with a brief surge before stabilizing. The global crypto market cap is down slightly on the day, near $3.18 trillion.
