"Yesterday, Bitcoin was trading at $116,000 yesterday but since slumped down to under $111,000 earlier today. Bitcoin's price slightly jumped to the high $111,000s as the news came out. It is currently trading at $111,470. Historically, bitcoin responds to monetary‑policy shifts. For example, after the Fed's emergency cuts in March 2020, Bitcoin plunged nearly 39 % before rebounding strongly. More recently, when the Fed cut rates in September 2025, Bitcoin's reaction was muted, suggesting markets may have priced in the move."
"Chair Powell also said that the central bank is approaching the end of its Quantitative Tightening (QT) program, a move that could provide a boost to risk assets, including bitcoin. The Fed said they will stop QT by December, according to reports. While Powell has previously flagged that the Fed is nearing this stage, uncertainty from the ongoing government shutdown complicated the outlook. With QT concluding, markets should respond positively."
The Federal Reserve lowered its benchmark interest rate by 0.25 percentage points to a 3.75%–4.0% range, the first cut since September 2025. Rate cuts reduce borrowing costs for consumers and businesses to stimulate spending and investment, though some view cuts as signals of economic weakness. Bitcoin fell from about $116,000 to under $111,000 before edging to $111,470 after the announcement, and historically reacts variably to monetary-policy shifts. Chair Powell said the Fed is nearing the end of Quantitative Tightening and plans to stop QT by December. QT reduces the Fed's balance sheet by selling or not reinvesting bonds, which tends to push yields and borrowing costs higher and can restrain spending.
Read at Bitcoin Magazine
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