Bitcoin Retreats to $90K After Fed Rate Cut, ADA Plunges 10%

The Federal Reserve’s third rate cut of the year, a widely anticipated 0.25% reduction bringing the benchmark to a 3.50%-3.75% range, acted as the catalyst for significant market moves. Bitcoin’s price action followed a now-familiar script observed after previous Federal Open Market Committee (FOMC) meetings. The asset initially surged, breaching $94,000 mere hours after the official disclosure, as rate cuts are generally viewed as bullish for risk assets like cryptocurrency. However, the rally was swiftly intercepted by bears, who drove the price down to a low of $89,600 before a slight recovery.

This pattern of immediate volatility has, according to some market observers on social media platform X, historically preceded significant surges. While the long-term impact of the latest monetary policy shift on Bitcoin’s performance remains uncertain, the short-term effect was clear: a slip in Bitcoin’s market capitalization to approximately $1.8 trillion. Notably, despite this price decline, Bitcoin’s dominance—its share of the total cryptocurrency market—increased to roughly 57.1%, indicating it held up better than most alternative coins during the selloff.

The altcoin market bore the brunt of the post-FOMC downturn. Most major alternative cryptocurrencies initially mirrored Bitcoin’s jump but subsequently retreated harder. Cardano (ADA) emerged as the worst performer among the top 100 digital assets, posting a 10% daily loss that pushed its price to hover around $0.42. This steep decline underscored the heightened risk and volatility often associated with altcoins during market-wide corrections.

The selloff was broad-based, affecting a range of prominent projects. Pump.fun (PUMP), Ethena (ENA), Avalanche (AVAX), Polkadot (DOT), Internet Computer (ICP), and Dogecoin (DOGE) all registered significant declines in the 6-8% range. This widespread red across major altcoins contributed to the total cryptocurrency market capitalization retracing by 2.2% to $3.17 trillion. The synchronized drop highlights the market’s current sensitivity to macroeconomic drivers and Bitcoin’s price movements.

Amid the prevailing negative sentiment, the market narrative was not uniformly bleak. A select few tokens managed to post gains, demonstrating pockets of resilience and divergent momentum. Provenance Blockchain (HASH) spiked by 8%, while MemeCore (M) recorded a 4% increase on a daily scale. These outliers suggest that even during broad market pullbacks, specific catalysts or community-driven narratives can fuel independent price action for smaller-cap assets.

The overall market picture, however, remains one of caution and consolidation. The key question for investors is whether the post-FOMC volatility will resolve into the significant surge some anticipate, based on historical precedent, or if it marks the beginning of a deeper correction. With Bitcoin’s dominance climbing even as its price fell, capital appears to be rotating toward perceived relative safety. The performance of altcoins like Cardano, Avalanche, Polkadot, and Dogecoin in the coming days will be critical in determining if this is a short-term shakeout or a more sustained shift in market structure.