Bitcoin Falls to $108,000 After Fed Rate Cut as Investors Turn Cautious

Bitcoin briefly fell to $108,000 following the U.S. Federal Reserve’s decision to deliver a second consecutive interest rate cut. The price later bounced back to around $111,000, though volatility quickly returned – and at the time of writing, BTC has slipped below $108,000 again.

During a press conference, Fed Chair Jerome Powell struck a more hawkish tone than expected, cooling hopes for continued easing.

“Rate cut in December is far from a foregone conclusion,” Powell said.

The Fed’s move – a 25-basis-point reduction – was initially interpreted as another step toward looser monetary policy. But Powell’s remarks tempered that optimism, sending risk assets lower.

According to the CME FedWatch tool, the probability of another rate cut by the end of the year dropped from 90% to 70%.

A key development came when Powell confirmed that the central bank will stop shrinking its $6.6 trillion balance sheet starting December 1. Analysts at Forbes noted that the move could inject liquidity back into the market, potentially serving as a medium-term catalyst for crypto recovery.

Alex Blume, head of investment firm Two Prime, said the Fed’s actions show a clear effort to stimulate growth.

“It’s obvious the U.S. government is trying to dig itself out of the debt and inflation trap,” he said.

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