Bitcoin Slumps After Fed Rate Cut, Oracle Earnings. What It Means for the Crypto Recovery.

Bitcoin fell toward $90,000 after the Federal Reserve cut interest rates in its final decision of 2025. (AFP via Getty Images)

Key Points

• Bitcoin fell over 2% to $90,238, down 29% from its October high of $126,000, and is down approximately 3% in 2025.
• The Federal Reserve’s December quarter-point rate cut did not boost cryptocurrencies, with officials forecasting only one more cut next year.
• Cryptocurrencies and tech stocks declined due to the Fed’s cautious stance and Oracle’s disappointing earnings and increased spending forecast.

It turns out the Federal Reserve’s December rate cut was just another false dawn for Bitcoin and hopes for a crypto comeback.

Cryptocurrencies fell Thursday as the fallout from the Fed’s meeting and Oracle’s disappointing earnings hit digital assets. The world’s largest cryptocurrency climbed above $94,000 shortly after the central delivered its expected quarter-point cut, before quickly reversing.

Bitcoin was trading at $90,238 early Thursday, down more than 2% over the past 24 hours, according to CoinDesk data. It’s 29% off its record high above $126,000 reached in early October, and is now around 3% down in 2025. Ethereum, the second largest crypto, fell 3.4% to $3,202, while popular altcoin XRP, used to facilitate and settle transactions on the Ripple payment platform, slipped 2.6% to $2.02.

“The tone from the [Fed]—marked by skepticism around additional easing—triggered a modest risk-off move across macro assets,” LMAX Group strategist Joel Kruger said. “Crypto markets felt the impact quickly, with elevated positioning amplifying the downside and pushing bitcoin lower into thinner liquidity conditions.”

It’s a concern for hopes of a crypto rebound as lower borrowing costs typically boost digital assets, making them more attractive relative to lower-yielding alternatives.

However, the Fed’s economic projections showed that the majority of officials forecast no more than one quarter-point reduction next year. A significant pause in the rate-cutting cycle is likely to hold back any crypto rebound.

On top of that, investors were grappling with renewed fears over an artificial-intelligence bubble following Oracle’s earnings late Wednesday. Tech stocks, which tend to move in tandem with cryptos, were tumbling ahead of the open after the cloud-computing company’s guidance missed Wall Street’s estimates and it hiked its spending forecast. The latter, in particular, will heightened fears over AI overspending.

Ultimately, it complicates–and potentially threatens–Bitcoin’s path back to $100,000 and beyond.

Write to Callum Keown at callum.keown@dowjones.com