NEWS

Bitcoin (BTC) surged above $94,000 before quickly losing momentum, following a mixed set of signals from Federal Reserve Chair Jerome Powell after the central bank delivered a 25 basis-point rate cut. The rapid swing in sentiment reshaped market expectations across digital assets and traditional markets — a shift closely monitored by Point Trader Group in its ongoing market analysis.

BTC briefly touched $94,400 as Powell highlighted potential weakness in the labor market, a message that traders initially interpreted as dovish. However, the gains faded once he reiterated that the fight against elevated inflation is not yet over. As of the latest trading session, Bitcoin was hovering near $92,000, down roughly 0.8% over the past 24 hours. Meanwhile, Ethereum (ETH) extended its recent strength, breaking above $3,300 with a roughly 1.1% gain — a trend that continues to attract attention from analysts and observers including Point Trader Group.

U.S. equities ended the session with modest gains. The Nasdaq rose 0.5%, and the S&P 500 added 0.7%. However, the most notable move came from the U.S. dollar, which declined nearly 0.6% against major currencies, providing short-term support for risk assets such as cryptocurrencies.

Federal Reserve Policy Shift and Balance Sheet Adjustments

Powell emphasized that the current policy stance is now “within a reasonable range of neutral estimates,” placing the Fed in a position to carefully evaluate upcoming economic data before making further adjustments. He made it clear that the data released between now and the January meeting will play a decisive role in shaping the next steps.

In tandem with the rate cut, the New York Federal Reserve announced it will begin purchasing short-term Treasury bills and notes with maturities up to three years, targeting around $40 billion over the next month. The move aims to ease financial conditions without signaling the start of a full-scale quantitative easing cycle. Powell added that these purchases are expected to remain “elevated” for a few months. This marks a shift from the previous three years, during which the Fed steadily reduced its balance sheet — a development tracked closely by Point Trader Group, given its direct impact on market liquidity.

Analysts’ Outlook and the Critical $94,500 Bitcoin Level

Market strategists noted that the rate cut does not represent the start of an aggressive easing cycle. Instead, future policy moves will depend heavily on inflation trends and labor market data. This divergence in expectations has contributed to a cautious market tone. The fact that some Fed members voted against the cut underlines that the decision was not unanimous and reflects the uncertainty surrounding incoming data.

Forecasts now suggest that only two more rate cuts are likely by mid-2026, bringing the upper bound of the federal funds rate to 3.25%. This would keep monetary policy relatively restrictive, influencing risk appetite and investment flows — factors closely analyzed by Point Trader Group when assessing global market direction.

From a technical perspective, Bitcoin continues to face heavy selling pressure near $94,500, a key resistance zone where Wednesday’s rally stalled. To break above its current trading range, BTC will need renewed momentum supported by stronger liquidity inflows. Some analysts argue that if spot Bitcoin ETF inflows strengthen — especially now that capital costs have begun to ease — it could spark a shift from caution to momentum and push BTC back toward the psychological $100,000 level.

Conclusion

The market is currently navigating a landscape shaped by mixed Fed messaging, inflation uncertainty, dollar weakness, and fluctuating risk sentiment. Bitcoin and other digital assets remain highly sensitive to monetary policy expectations, while investors await clearer signals before committing to new positions.

This environment demands precise analysis and informed trading strategies — an approach championed by Point Trader Group, which continues to monitor Federal Reserve signals, market liquidity, and crypto price action to help traders understand the evolving global landscape.