The Bitcoin (BTC) price saw a slight recovery on Thursday after the US Federal Reserve cut interest rates for the third time this year. Analysts note that this rebound may not mark the end of recent volatility. Markets often stabilise once the initial uncertainty following a policy decision fades, which can lead to a temporary price increase.

Rate cut largely anticipated by the market

According to Jeff Ko, Head Analyst at CoinEx, the rate cut did not come as a surprise. Investors had already priced in this move. However, Ko points out that the so-called dot plot — the forward guidance from Fed officials — appeared slightly more cautious than expected. This may signal hesitation regarding further rate cuts.

Ko also highlights that the Federal Reserve‘s decision to purchase 40 billion dollars in short-term government bonds is primarily aimed at keeping money markets stable. This is considered technical liquidity management rather than an effort to stimulate the economy on a broad scale. Financial markets initially responded positively. US equities moved higher, and Bitcoin followed this upward trend.

A calmer reaction suggests a maturing market

Jurrien Timmer, Director of Global Macro at Fidelity, also notes a structural shift. He observes that Bitcoin appears to react less sharply to policy changes than in previous market cycles. Although lower interest rates can be favourable for risk-on assets over the long term, earlier rate cuts have each been followed by brief pullbacks. According to analytics firm Santiment, this aligns with the well-known pattern of “buy the rumour, sell the news”.

Key levels to watch in the short term

Following the rate cut, Bitcoin briefly dipped below 90,000 dollars. One day later, the price recovered to around 93,500 dollars, but this level once again acted as strong resistance. During Friday morning trading, BTC moved back towards 92,300 dollars.

As long as the price struggles to sustain a move above 93,000 dollars, it remains uncertain whether a larger breakout is likely in the short term. Only a clear break above this resistance may give the market a new sense of direction.

Disclaimer: This is not financial advice. Always conduct your own research or seek professional guidance before making investment decisions.