The US Federal Reserve has approved a 25-basis-point interest rate reduction, marking its third cut this year amidst ongoing economic concerns. Although Bitcoin briefly surged past $94,000 following this move, market reactions underscore divisions within the Fed over future monetary policy and economic outlooks. The hawkish tone associated with the rate cut suggests that Bitcoin’s short-term price action may remain subdued, with potential sell-offs if bullish momentum fails to materialize.
Official sources indicate the Fed’s 9-3 voting split reflects persistent worries about inflation resilience and economic growth, hinting at slower future rate adjustments. Meanwhile, data from Glassnode reveals Bitcoin remains trapped within a fragile price corridor below $100,000, constrained between the short-term cost basis at around $102,700 and the “True Market Mean” at approximately $81,300. The cryptocurrency’s on-chain conditions are weakening, with thinning futures markets and continued sell pressure keeping Bitcoin subdued despite minor upticks.
Key Takeaways
- •Bitcoin’s price remains constrained below $100,000 amid increasing unrealized losses.
- •Realized losses have surged to a daily average of $555 million, reaching levels last seen during the FTX collapse in 2022.
- •Profits realized by long-term holders have peaked, with over $1 billion per day in gains, signaling heavy distribution and capitulation among top buyers.
- •The recent rate cuts are unlikely to catalyze a significant bullish breakout in Bitcoin’s price in the near term.
Time is Running Out for Bitcoin to Reclaim $100,000
According to Glassnode, Bitcoin’s inability to surpass the $100,000 threshold signals mounting structural tension. Prolonged trading within this fragile range has led to the accumulation of unrealized losses, increasing the likelihood of forced liquidations. The relative unrealized loss (30-day simple moving average) has risen to 4.4%, a notable increase from below 2% over the past two years, indicating a heightened stress environment for bulls.
Despite a bounce from recent lows to approximately $92,700, the entity-adjusted realized loss continues to climb, reaching $555 million per day—a signal comparable to levels seen during the FTX fallout. Simultaneously, long-term holders have realized over $1 billion daily in profits, a record high, which has helped keep Bitcoin below critical resistance levels between $95,000 and $102,000, further constraining its upward momentum.
Spot Rally and Divergence with Futures Market
Data from CryptoQuant reveals a divergence between Bitcoin’s spot market and futures activity. While Bitcoin’s price has rallied ahead of upcoming Federal Reserve meetings, open interest in futures markets has declined. This suggests the recent rally has been primarily driven by spot demand rather than leverage-based speculation, which historically offers more sustainable bullish momentum. However, with derivatives volumes remaining dominant, the market’s ability to sustain upward movements may be limited if rate expectations soften.
Overall, the landscape indicates cautious optimism, but without significant improvements in on-chain fundamentals or futures positioning, Bitcoin faces hurdles before a decisive move beyond the $100,000 mark.