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BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
12/20/2025

Bitcoin Struggles Around $90,000 as Fed Rate Cut Expectations Fade

Bitcoin continues to trade weakly around the $90,000 level as macroeconomic headwinds in the U.S. and globally are pushing investors toward a more cautious stance. Soft U.S. jobs data and signals of slowing economic growth have driven capital into safe-haven assets, dimming Bitcoin's near-term appeal. In recent weeks, demand for U.S. Treasury bonds has surged, reflecting an increasingly pronounced risk-off tone across markets. S

Bitcoin Struggles Around $90,000 as Fed Rate Cut Expectations Fade

Bitcoin continues to trade weakly around the $90,000 level as macroeconomic headwinds in the U.S. and globally are pushing investors toward a more cautious stance. Soft U.S. jobs data and signals of slowing economic growth have driven capital into safe-haven assets, dimming Bitcoin's near-term appeal.

In recent weeks, demand for U.S. Treasury bonds has surged, reflecting an increasingly pronounced risk-off tone across markets. At the same time, the probability of a Federal Reserve rate cut has continued to fall, signaling that investors no longer expect monetary policy to ease aggressively enough to support risk assets like crypto.

Bitcoin has repeatedly failed to hold the $92,000 level throughout the past month, in stark contrast to U.S. equities. The S&P 500 sits just roughly 1.3% below its all-time high, while Bitcoin remains nearly 30% below the $126,200 peak set back in October. This divergence points to heightened risk aversion and undercuts the narrative that AI bubble concerns are the primary driver of market pressure.

Amid prolonged economic uncertainty, gold has emerged as the preferred hedge over Bitcoin. Despite its decentralized nature and long-term potential, Bitcoin remains visibly sensitive to global liquidity conditions and market sentiment.

Another factor capping Bitcoin's upside is the Fed's balance sheet reduction through most of 2025, which has drained liquidity from the financial system. While that trend showed signs of reversing late in the year as the U.S. labor market softened, caution still dominates. Major retailers such as Target, Macy's, and Nike have all issued cautious outlooks, reinforcing concerns that consumer spending is slowing.

Adding to the uncertainty, instability in Japan's economy is heightening the risk of contagion across global markets. Japan's 10-year government bond yield topping 2% for the first time since 1999 — against a backdrop of contracting GDP — has made investors even more reluctant to hold high-volatility assets.

On the whole, Bitcoin's struggle around $90,000 reflects deep uncertainty over the global growth outlook and the U.S. labor market. As risk appetite weakens, the tailwind that low rates and stimulus packages once provided to risk assets continues to fade. In the near term, Bitcoin is unlikely to serve as an effective hedge against macro volatility.