Following yesterday's wild swings after the Federal Reserve's rate cut, Bitcoin fell below $90,000 for the first time in two days amid demand concerns for risky assets. Stocks rallied in contrast on Thursday.
Bitcoin dropped as much as 3.4% on Thursday, breaching the $90,000 level for the first time since early this week after its volatile reaction to the Fed's 25 basis-point rate cut the previous day. The cryptocurrency retreated toward the bottom of its recent $85,000–$95,000 trading range.
Despite the rate cut typically boosting risk assets, investor worries over demand prevailed. Ether declined up to 5.8%, amplifying losses in smaller cryptocurrencies.
Meanwhile, traditional stocks rallied in New York, underscoring a split in sentiment between equities and crypto. This further highlights Bitcoin's sensitivity to Fed policy shifts.
