Bitcoin dropped to $92,000 on Thursday, down about 0.4%, as traders basically gave up on the Fed cutting rates in December. The probability of a December cut crashed to just 32%, which killed any appetite for risky assets like crypto.
The Fed minutes showed officials are still worried about inflation and the job market, making them way more cautious than people expected. That uncertainty has absolutely destroyed crypto markets; they’ve lost $700 billion in value since early November alone.
What’s making things worse is that Bitcoin spot ETFs have seen five straight days of outflows totaling $2.26 billion. When institutional money keeps leaving like that, it creates constant selling pressure that’s hard to overcome.
Bitcoin’s market cap is sitting at $1.89 trillion now with $80 billion in trading volume. Ethereum fell too, dropping 0.28% to $3,042. Both coins are way down from their peaks earlier this year when Bitcoin hit $126,000 and everyone thought the Fed would keep cutting rates aggressively.
The whole narrative that drove Bitcoin’s rally, rate cuts, and institutional adoption has basically stalled out. Momentum buyers who were chasing gains have pulled back, and retail investors aren’t buying dips anymore. Bitcoin’s now nearly 30% off its October high, giving back basically all its 2025 gains.
Conclusion
Bitcoin’s momentum has completely faded as rate-cut hopes collapse, institutional outflows rise, and retail demand weakens, leaving the market struggling under heavy selling pressure.
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