Bitcoin fell back below $90,000 on Thursday as traders reacted to the Federal Reserve’s first rate decision of 2026.
The largest cryptocurrency is trading near $87,700, after briefly surpassing $90,000 earlier today.
The broader crypto market also fell slightly before and after the Fed’s announcement.
The US central bank kept interest rates unchanged in a range of 3.50% to 3.75%. Officials reiterated that future decisions would be decided on a “meeting by meeting” basis.
This message failed to calm markets and kept risky assets uneven.
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Data from CoinGecko showed the total crypto market value at around $3.11 trillion, down around 0.1% over the past 24 hours. Bitcoin was near stable that day, but struggled to maintain higher levels.
Ethereum traded near $3,000 after a slight pullback, reflecting the cautious mood among major tokens.
Bitcoin’s trading range has tightened again after a sharp move that took it from an early-year push toward $98,000 to the $86,000 zone.
The market then returned to the high $80,000 level, where it held for most of the week.
A note from Investing.com describes this development as a rally that “has been moving aggressively below 90,000,” with spot prices “now fluctuating around 88,000 to 88,500” as silver moves into metals.
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“Macro traders are looking at Powell,” a desk strategist told Yahoo Finance, arguing that the timing of the first rate cut in 2026 matters more than this week’s hold.
The key test now is simple: Can Bitcoin get back above $90,000, or does risk aversion push the market deeper into the correction that began before the Fed meeting?
Crypto analyst Ali Martinez said markets continue to adjust after October’s deleveraging, which has reduced the risk appetite of exchanges and market makers.
He added that fundamentals appear stronger and institutional interest continues to grow, even as capital flows toward rising gold and silver prices.
And historically, strength in metals tends to appear before crypto picks up, not in place of it.
The increasing leverage in Bitcoin markets creates major liquidation risk on both sides of the transaction.
Analyst Ted said nearly $13.29 billion in short positions would be wiped out if Bitcoin hits $105,000.
On the other hand, around $13.5 billion in long positions are at risk of being liquidated if BTC falls to $75,000. The numbers highlight how closely positioned traders remain as Bitcoin trades near key levels.
