BTC retreats toward low $90Ks as thin liquidity and weak demand limit momentum despite the Fed's rate cut.
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Crypto market cools as traders reassess risk after Fed decision and shifting liquidity trends
Bitcoin traded around $90,200 (roughly Rs. 81.6 lakh) on Thursday after a volatile reaction to the US Federal Reserve's latest 25 bps rate cut, which was announced in the early hours of December 11. The asset briefly surged past $94,400 (roughly Rs. 85.3 lakh) immediately after the decision, before retreating toward the lower end of its range. Analysts say thin liquidity, weaker spot demand and uncertainty following US Fed Chair Jerome Powell's cautious guidance have kept BTC from sustaining upside momentum. Ethereum (ETH) traded near $3,200 (roughly Rs. 2.90 lakh). According to the Gadgets 360 tracker, Bitcoin is priced at approximately Rs. 81.6 lakh in India, while Ethereum trades at around Rs. 2.90 lakh.
Altcoins mirrored Bitcoin's weakness on Thursday, as Solana (SOL) slipped to $131 (roughly Rs. 11,840), XRP retreated to $2.01 (roughly Rs. 181), and Binance Coin (BNB) traded near $871.52 (roughly Rs. 78,760). Dogecoin (DOGE) moved to $0.14 (roughly Rs. 12.5).
Vikram Subburaj, CEO of Giottus, said Bitcoin's price action highlights a market still lacking conviction. “The move highlights a market that will react to headlines but lacks underlying depth: bid-ask liquidity is thin, spot CVD is weak, and on-chain activity remains subdued. The recent rally has been spot-led while open interest and leverage continue to fall. This suggests that the upside is real but shallow. For investors, this remains a range-bound setup [...] Until flows strengthen, the sensible approach is to keep exposure moderate and avoid chasing intraday spikes.”
WazirX founder Nischal Shetty said global liquidity trends and macro signals continue to shape crypto behaviour. “ The Federal Reserve's softer stance and recent rate cut weakened the US dollar and boosted risk appetite across traditional finance. Market reactions are highly sensitive to even subtle shifts in Fed language. Altcoins such as MATIC, ARB, UNI and INJ remain highly sensitive to macro conditions, often showing sharper moves as liquidity shifts."
Analysts say BTC must hold above $90,000 (roughly Rs. 81.6 lakh) to remain stable, while clearing $94,500 (roughly Rs. 85.4 lakh) could reopen the path toward $100,000 (roughly Rs. 90.4 lakh) if flows strengthen and sentiment improves.
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