Bitcoin loses support at $90.000 after the Fed's third rate cut.
The reaction of financial markets to monetary policy decisions usually follows pre-established scripts, but the recent behavior of digital assets has defied investors' more linear expectations.
Despite the fact that the US Federal Reserve recently confirmed its third consecutive rate cut this yearThis December, the price of the leading cryptocurrency has failed to capitalize on the stimulus. On the contrary, Bitcoin's price has shown notable weakness, falling from the $94.000 range it held hours before the announcement to lose the psychological support level of $90.000 at the time of writing.
This price movement reflects a volatility in Bitcoin that persists even in a macroeconomic environment that, theoretically, should favor risk assets.
Bitcoin is trading at $88K: buy it hereBitcoin falls to $88.700 after Fed euphoria
After a brief rally that took the cryptocurrency above $94.000, selling pressure quickly prevailed.
According to the most recent market data, the price has fallen to the area of $88.700 per BTCThis represents a drop of nearly 3% in the last week, according to charts from platforms like CoinGecko. This downward movement suggests that the market had already priced in the central bank's decision too early, triggering the classic financial phenomenon known as selling on the news once the event has occurred.
Source: CoinGecko
Vanguard gives in to Bitcoin: Spot ETFs now available to its clients
While Bitcoin's price struggles, the broader crypto ecosystem is undergoing a phase of structural transformation led by the world's largest asset managers. A prime example of this new reality is that of Vanguard group, a firm that manages assets worth $12 trillion.
The company has begun to allow their clients to trade Bitcoin spot exchange-traded fundsThis decision marks a significant expansion in access to crypto products for traditional investors. However, this operational openness coexists with fundamental skepticism from its management, creating an interesting paradox in the adoption narrative.
Vanguard's stance illustrates the complexity with which traditional finance is integrating this new asset class. John Ameriks, the firm's global head of quantitative pricing, recently stated at a Bloomberg event that the company prefers to view Bitcoin as a speculative collectible rather than a productive, cash-flow-generating asset. However, despite this perspective, market pressure has forced the firm to embrace the crypto ecosystem.
In general terms, Vanguard's decision was a direct response to the surge in demand for these ETFs since their approval in January 2024. These financial products have demonstrated operational strength, with massive capital flows which exceed hundreds of billions of dollars. Vanguard yielded to this reality in order not to lose customers, thus validating the maturity of the crypto infrastructure and strengthening its long-term liquidity, beyond philosophical doubts.
Buy Bitcoin in seconds with Bit2MeTraditional banks embrace Bitcoin in the face of temporary market downturns
Beyond daily fluctuations and divided opinions, institutional adoption of Bitcoin and cryptocurrencies continues to advance steadily in the US banking sector. Large-scale entities such as PNC Bank They have taken a qualitative leap by becoming pioneers within traditional banking, offering direct Bitcoin trading to their private banking clients. The bank has integrated the leading cryptocurrency into its wealth management services, a move that further legitimizes the presence of crypto assets in diversified investment portfolios.
This trend has been reinforced by strategic recommendations from other financial giants. For example, Bank of America It has recently urged its wealth management clients to consider allocating between 1% and 4% of their portfolios to digital assets. This shift in focus suggests that, for senior financial advisors, the risk of not having exposure to this market is beginning to outweigh the risk of its inherent volatility. Thus, the narrative surrounding cryptocurrencies has evolved from pure speculation to strategic diversification and asset hedging.
Finally, analysts from private banks such as JPMorgan They have also maintained a constructive view of Bitcoin's recent price drop, interpreting the cryptocurrency's current pullback as a natural technical correction within a broader bull cycle, rather than a structural market failure.
At the time of writing, Bitcoin's market capitalization, which remains around 1,81 trillions of dollars With a circulating supply of nearly 19,96 million units, it demonstrates the magnitude and resilience of the asset. Although the price of BTC has experienced short-term adjustments due to macroeconomic factors or profit-taking, the infrastructure supporting its trading is more robust than ever thanks to the participation of regulated entities.
Take advantage of the drop and buy Bitcoin todayMarket outlook in the face of the technical correction
In summary, Bitcoin's price pullback to $88.000 serves as a reminder that volatility remains an intrinsic feature of this ecosystem, capable of ignoring even the Federal Reserve's monetary stimulus when investor sentiment leans towards caution.
However, the influx of liquidity through institutional channels and the integration of crypto services into traditional banking are creating a structural support system that was absent in previous cycles. These developments indicate that the crypto ecosystem is gaining resilience, with institutional capital absorbing downward pressures and facilitating faster recoveries.
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