Bitcoin Plunges After Fed’s Rate Cut Announcement: Macroeconomic Headwinds Impact Market

Bitcoin experienced a significant downturn following the Federal Reserve’s decision to cut rates by 0.25%, with prices dropping as much as 6% from Monday’s highs. This move comes amidst growing concerns about the economy and market sentiment, despite expectations for continued rate cuts in the coming months. Analysts attribute this drop to macroeconomic headwinds such as a weakening job market and persistent inflation fears. While traders anticipate further interest rate reductions through 2026, Bitcoin’s near-term price action has been counter to their expectations, indicating a shift in focus away from rates to broader economic concerns.