Bitcoin Drops Below $110K After Powell Signals December Rate Cut Uncertain
Bitcoin extended losses Wednesday after Federal Reserve Chair Jerome Powell pushed back on expectations of another rate cut in December, triggering a sharp sell-off across risk assets.
Speaking at his post-meeting press conference, Powell said that “a rate cut in December is far from a foregone conclusion,” dampening hopes for continued easing. The remarks came shortly after the Fed announced a widely expected 25 basis point cut, bringing its target rate to 3.75%–4.00% and signaling an end to quantitative tightening on December 1.
The tone of the meeting, however, was notably hawkish. Kansas City Fed President Jeffrey Schmid voted to keep rates unchanged, while Governor Stephen Miran pushed for a deeper, 50 basis point reduction.
Following Powell’s comments, bitcoin (BTC) fell nearly $2,000 to around $109,600, down roughly 5% over the past 24 hours, reversing early-week gains. The move mirrored a broader risk-off reaction, with stocks turning lower and the 10-year Treasury yield climbing eight basis points to 4.06%. The U.S. dollar index also strengthened.
Market odds for a December rate cut dropped sharply from 90% to 69%, according to CME FedWatch data.
Powell acknowledged signs of cooling in the labor market but said inflation “remains somewhat elevated,” emphasizing that policy decisions will remain data-dependent.
Amid an ongoing government shutdown and economic data blackout, analysts said the Fed faces increased uncertainty heading into year-end.
“The lack of real-time data means the Fed is effectively flying blind,” said Marcin Kazmierczak, co-founder of RedStone. “That kind of uncertainty tends to heighten volatility — especially in crypto.”
Despite the sell-off, some traders see the pullback as a potential accumulation phase.
“Bitcoin is still holding within the $110,000–$120,000 range,” said Paul Howard, director at trading firm Wincent. “This kind of dip could set up a recovery heading into November before the market consolidates into year-end.”
For now, Powell’s comments have cooled optimism that the Fed will deliver another cut this year, reinforcing the central bank’s cautious stance as it balances slowing growth with persistent inflation risks.
