New york: Bitcoin experienced a significant drop of more than 4.4% on Wednesday as expectations for a rate cut by the US Federal Reserve continued to decline, contributing to a downward trend for the cryptocurrency.
According to Anadolu Agency, Bitcoin was trading at $88,640 at 1945GMT on Wednesday, having fallen below the $90,000 threshold for the first time since April. Data from CoinMarketCap indicated a 5.4% reduction in the global cryptocurrency market's value over the last 24 hours, bringing it down to $3.02 trillion.
Bitcoin's market capitalization saw a 5.1% decrease over the past day, settling at $1.76 trillion, while its daily trading volume dipped by 35% to $74 billion. The cryptocurrency's weekly losses extended to 12.5% by Wednesday. Notably, Bitcoin's value had previously dropped to $74,400 in April 2025 following the impact of tariffs imposed by US President Donald Trump on global financial markets.
Ethereum, recognized as the second-largest cryptocurrency by market value, also experienced a decline, sliding approximately 9.1% to $2,870. The global crypto market has been affected by uncertainties surrounding monetary policy and diminishing expectations of a December rate cut by the US Federal Reserve.
The minutes released from the Fed's last meeting on Wednesday revealed ongoing disagreements among officials regarding whether the stagnant labor market or persistent inflation posed more significant economic risks, as well as differing opinions on the interest rate path. Disagreements persisted into December's forecast, with many officials expressing doubts about the necessity of a further rate cut, which the markets had been anticipating eagerly, suggesting that no additional cuts would be necessary at least until the year's end.
CME FedWatch data on Wednesday showed that traders were pricing in only a 31.6% chance of a 25-basis-point cut in December, a significant decrease from the previous week's 63.8% probability. Meanwhile, the crypto market experienced a substantial sell-off at the start of last month, resulting in over $19 billion in liquidations and reducing the global cryptocurrency market's value, including Bitcoin, by more than $1 trillion.