Markets are reacting to the Federal Reserve’s latest rate cut much as expected, with the U.S. dollar weakening, Treasury yields pulling back and precious metals rallying. Cryptocurrencies, however, remain under pressure and continue to underperform broader risk assets.
Easier Fed policy typically weighs on the dollar, supports gold and silver, lowers bond yields and boosts risk appetite across markets, including digital assets. This time, the response has been uneven. The dollar index has slipped to a seven-week low, silver has surged to a record near $64 an ounce, and the 10-year Treasury yield has eased to 4.12% from 4.20%.
Crypto prices briefly jumped following the Fed decision but quickly reversed. Bitcoin climbed above $94,000 in the immediate aftermath before sliding to around $89,400, leaving it down roughly 3% over the past 24 hours. Ether has dropped 5.5%, while XRP and Solana are each lower by about 4%.
Weakness in AI-related stocks may be adding to the pressure on digital assets. Oracle shares plunged 14% after the company reported disappointing quarterly earnings, dragging down major semiconductor names such as Nvidia, AMD and Broadcom and pushing the Nasdaq down 1.2%.
The selloff has also hit crypto-linked equities, particularly bitcoin miners that have increasingly pivoted toward AI infrastructure. Shares of Hut 8, Iren, Cipher Mining and Riot Platforms are down between 5% and 6%.
Elsewhere in the sector, bitcoin treasury firm Strategy has fallen 6.4%, Coinbase is lower by 5%, and Robinhood slid 8.3% after its November update pointed to a sharp slowdown in crypto trading volumes.
