Bitcoin’s value took a significant hit on Thursday, falling below the $90,000 mark, primarily driven by concerns around artificial intelligence profitability that have swept through the tech sector. The decline followed disappointing forecasts from U.S. cloud giant Oracle, raising apprehensions about future profits in AI investments.
As the dust settled from the Federal Reserve’s recent policy decisions, Bitcoin was recorded at $90,056.24, reflecting a 2.5% drop. Ether wasn’t spared either, experiencing a steeper decline of 4.3% to $3,196.62, erasing gains made earlier in the week.
On Wednesday, the Federal Reserve decided to cut its effective fed funds rate by 25 basis points but cautioned against any immediate future cuts. Fed Chair Jerome Powell hinted at a cautious approach regarding monetary policy, reiterating that more data would inform the central bank’s next moves, especially with many metrics arriving before the scheduled January meeting.
BREAKING: The US Federal Reserve officially cuts interest rates by 25 basis points in their third interest rate cut of 2025.
— The Kobeissi Letter (@KobeissiLetter) December 10, 2025
Bitcoin’s volatility was on full display during Powell’s press conference, which saw the price briefly surge past $94,000 when he implied potential weakness in the labor market. However, following his subsequent remarks about ongoing inflation concerns, the cryptocurrency’s price quickly retreated to the $92,000 level, causing traders to reflect on the narrative of uncertainty in the market.
In the wake of this rollercoaster ride, Bitcoin has recently stabilized in the $92,000 range. As fluctuations continued, Ether displayed greater resilience, managing a slight rise while hovering above $3,300.
Market Dynamics
The broader stock market appeared more optimistic on Thursday, with the Nasdaq and S&P 500 recording gains of 0.5% and 0.7% respectively. The dollar also weakened, falling 0.6% against major currencies like the yen, euro, and pound.
Powell emphasized that the Fed is now operating within a reasonable range of neutral policy rates, indicating a careful approach to any further adjustments. The awaiting deluge of economic data before the next FOMC meeting will likely influence any decisions regarding future rate changes.
Interestingly, two members of the FOMC dissented against the recent rate cut, highlighting the closeness of this decision amid incomplete economic data.
Meanwhile, the New York Fed announced its intention to purchase $40 billion in short-term Treasury securities in the coming month, a move aimed at enhancing financial conditions without initiating a full-scale quantitative easing program.
Bitcoin Price Forecasts Adjusted
In a notable turn of events, Standard Chartered revised its Bitcoin price forecast downward, now projecting a year-end price of $100,000 for 2025, a considerable drop from its previous $200,000 estimate. Nevertheless, the bank still anticipates that Bitcoin could reach as high as $500,000 by 2030.
LATEST: 📊 Standard Chartered’s global head of digital assets research has cut his 2025 year-end Bitcoin price outlook to $100,000 from $200,000, though still expecting BTC to hit $500,000 by 2030. pic.twitter.com/SYatWM7PQV
— CoinMarketCap (@CoinMarketCap) December 10, 2025
The bank’s Geoff Kendrick noted that the buying spree of Bitcoin by digital asset treasury firms may have peaked, suggesting future Bitcoin price increases will mainly rely on ETF investments.
Observers like Tony Sycamore from IG stressed that the broader crypto ecosystem needs solid proof of a definitive end to the recent selloff before sentiment can shift back to the bullish territory. Meanwhile, David Hernandez from 21Shares pointed out the critical resistance at the $94,500 mark, which Bitcoin needs to surpass to gain a more upward momentum.
Adding to the day’s discourse, Oracle’s disappointing outlook on AI revenues has renewed jitters surrounding tech stocks, marking a broader concern about profitability in the burgeoning AI sector.
As the market navigates these Boston-maze-like conditions, investors are left grappling with formidable hurdles that lie ahead in the world of cryptocurrency.
