W3BStation
Markets
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 the $90,000 Level as Fed Rate-Cut Expectations Fade

Bitcoin continues to trade weakly around the $90,000 zone as macroeconomic conditions in the U.S. and globally are pushing investors toward greater caution. Soft U.S. jobs data alongside 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 sharply, reflecting an increasingly clear risk-off trend across markets. S

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

Bitcoin continues to trade weakly around the $90,000 zone as macroeconomic conditions in the U.S. and globally are pushing investors toward greater caution. Soft U.S. jobs data alongside 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 sharply, reflecting an increasingly clear risk-off trend across markets. At the same time, the probability of a Federal Reserve rate cut continues to decline, signaling that investors no longer expect monetary policy to ease aggressively enough anytime soon to support risk assets like crypto.

Bitcoin has repeatedly failed to hold the $92,000 level over the past month, diverging sharply from U.S. equities. The S&P 500 is currently only about 1.3% below its all-time high, while Bitcoin remains nearly 30% below its peak of $126,200 set in October. This divergence points to heightened risk aversion and undermines the narrative that AI bubble concerns are the primary source of market pressure.

Against the backdrop of prolonged economic uncertainty, gold is emerging as the preferred hedge over Bitcoin. Despite its decentralized nature and long-term potential, Bitcoin remains clearly 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 been draining liquidity from the financial system. Although that trend showed signs of reversing late in the year as the U.S. labor market weakened, caution still dominates. Major retailers such as Target, Macy's, and Nike have all issued warnings about their business outlook, reinforcing concerns that consumer spending is slowing.

Adding to the uncertainty, instability in Japan's economy is heightening contagion risk across global markets. The 10-year Japanese government bond yield surpassing 2% for the first time since 1999, alongside a contraction in Japan's GDP, has made investors even more wary of high-volatility assets.

Overall, Bitcoin's struggle around the $90,000 level reflects deep uncertainty about the global growth outlook and the U.S. labor market. As risk appetite weakens, the positive tailwind that low interest rates and stimulus packages typically provide to risk assets also fades. In the near term, Bitcoin is unlikely to serve as an effective hedge against macroeconomic volatility.