Asian Market Open: Bitcoin Price Falls Below $110,000, Leaving Traders Confused About Their Next Move After Fed Cuts Interest Rates

Hello, Asia.

Before the opening bell, markets were still struggling to find their way after the Federal Reserve cut interest rates as expected but left room for uncertainty over next steps, while Bitcoin’s price fell below $110,000, continuing its losses as traders remained cautious following the conservative tone from central bank governor Jerome Powell.

Asian stock markets opened mixed, with stock prices in Japan and Australia falling, hit by weakness in U.S. contracts, after the Standard & Poor’s 500 index lost earlier gains.

Stock markets on Wall Street also closed mixed, with Meta warning of an increase in operating expenses for 2026, while growth in Microsoft Azure disappointed investors.

Quick market overview

• Bitcoin price: $110,622, down 1.7%
• Ethereum Price (Ethereum-ETH): $3,930, down 1.7%
• Ripple Coin Price (Ripple-XRP): $2.58, down 1.3%
• Total value of digital currencies: $3.83 trillion, down 1.1%

The US Federal Reserve is proposing a 25 basis point interest rate cut and Powell warns that a lack of data could disrupt monetary policies.

The Federal Reserve lowered its benchmark interest rate by 25 basis points (0.25%) to a range of 3.75% to 4% in its first steps in months, but Powell urged caution in expecting another cut this year and said lawmakers were reassessing risks to the labor market and would remain cautious, especially as the government shutdown restricts access to economic data.

“The reduction was expected – it was very clear to me,” said Maja Vujinovic, CEO and co-founder of the digital assets division at FG Nexus. She added: “Many of my digital currency followers were expecting a slight rally, but the market is still going through a wave of intense selling. While Powell’s stance seemed less optimistic, traders hoped it would indicate a larger or more frequent future decline (in interest rates).

For its part, the Central Bank statement acknowledged the lack of data resulting from the continued government shutdown, warning that this could complicate future decisions if reports on employment and inflation are not available. As a result, markets quickly lowered their expectations for further monetary easing, pushing two-year Treasury yields up 11 basis points and giving a boost to the US dollar (USD).

Interest rate cuts fail to spark recovery after dovish Powell statement

Investors in Asia are awaiting the Bank of Japan’s monetary policy decision on Thursday, as interest rates are expected to remain unchanged at 0.5%, and it will be the first meeting under the leadership of Prime Minister Sanae Takaichi, seen as a supporter of continued monetary easing policies.

It coincided with the shift in diplomatic focus toward South Korea, as U.S. President Donald Trump is expected to meet with Chinese President Xi Jinping later today, as the two leaders prepare to strike a limited truce deal that could halt the imposition of new tariffs and resume trade in some commodities such as soybeans.

The Fed’s December easing of monetary policy is a major catalyst for the takeoff of risk assets

Voinovich stressed that uncertainty regarding the macroeconomic outlook still prevails, adding: “Some investors are rushing to take profits at current resistance levels and reduce their risk exposure until the Federal Reserve and the broader global economy get additional clarity.”

For his part, Greg Magadini, director of derivatives markets at Amberdata, said a change in monetary policy could be in the interest of crypto markets once liquidity conditions improve. He added: “We are still in the early stages of the drawdown cycle, and the recovery of liquidity will help increase prices and reduce Bitcoin price volatility. »

He added that the plan to end monetary tightening that the Federal Reserve plans to pursue in December would support risk appetite. Magadini said: “The expected decision by the Federal Open Market Committee (FOMC) will reinforce the decline in volatility. As long as liquidity remains easy, we expect digital currency prices to continue to rise through the end of the year.”

Currently, uncertainty continues to dominate the market, prompting traders to adjust their strategies based on the Federal Reserve becoming more cautious, in addition to the partial government shutdown and lack of data, leaving markets confused about further developments.

The post Asian Market Open: Bitcoin (BTC) Price Falls Below $110,000, Leaving Traders Confused About What’s Next After Fed Cuts Interest Rates appeared first on Cryptonews Arabic.