Jerome Powell Hints At Rate Cut Pause, Bitcoin Struggles Below $94K Resistance
In Brief
The Federal Reserve signaled a pause on further rate cuts amid elevated inflation risks, while Bitcoin retreated to $90K with analysts eyeing ETF inflows as a potential catalyst for a move toward $100K.
The Federal Reserve, central bank of the United States, indicated that the Federal Open Market Committee (FOMC) may delay further interest rate reductions after implementing its third cut of the year.
During a press conference following Wednesday’s closely watched meeting, Chair Jerome Powell noted that policy adjustments made since September have brought rates within a “range of plausible estimates of neutral.” He added that this positioning allows the central bank to assess the timing and magnitude of any future rate changes based on incoming economic data, evolving projections, and the overall balance of risks.
The bank’s economic projections reflect a median expectation of only one 25-basis-point rate in 2026. The projections also show lower estimates for both PCE and core PCE compared with September, an unchanged unemployment rate, and a higher GDP forecast.
Jerome Powell highlighted that downside risks to employment have increased while inflation “remains somewhat elevated.” He indicated that interest rates are likely to remain stable or experience only minor reductions next year, emphasizing that further hikes are not anticipated as the baseline scenario.
He noted that the main inflationary pressures are linked to tariffs imposed during the Donald Trump administration, which are expected to cause primarily one-time price increases. The Federal Reserve Chair suggested that inflation could peak in the first quarter of next year if no new tariffs are introduced.
Bitcoin Retreats To $90K After Rate Cut, Analysts Eye ETF Inflows As Path To $100K
Bitcoin traded around $92,000 for much of the day. Following the rate cut, it briefly rose above $94,000 before retreating back to approximately $92,000. At the time of writing, the cryptocurrency is priced at $90,188, reflecting a decline of more than 2.58% over the past 24 hours.
The outcome of the Federal Reserve meeting was closely watched by market participants, as it was seen as a potential catalyst for a Bitcoin resurgence and provided insight into its future movements as investors seek to predict the upcoming market trend.
Analysts suggest that for Bitcoin to move decisively above its current range, it will require new momentum to overcome the concentrated short positions near the $94,500 resistance level, which capped Wednesday’s upward surge.
If spot exchange-traded fund (ETF) inflows increase as anticipated amid declining capital costs, this could serve as a catalyst, potentially converting cautious trading into upward momentum and pushing Bitcoin back above the $100,000 psychological level.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
