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Bitcoin Briefly Tops $94,000 After Fed Rate Cut as Supply Tightens

A 25 basis point move has traders reassessing risk into a market with thinning exchange supply.

Overview

  • Bitcoin spiked to roughly $94,600 before slipping back into the low $90,000s following the Federal Reserve’s quarter-point cut and Powell’s cautious tone reported later in the day.
  • Roughly $429–$436 million in crypto positions were liquidated over 24 hours, with the majority from shorts, underscoring leverage-driven swings during the move.
  • Institutional demand showed fresh traction with $716 million in weekly inflows to crypto investment products, led by $245 million into XRP ETPs and outflows from short‑Bitcoin funds.
  • On-chain data show exchange reserves near multi‑year lows at about 2.76 million BTC, indicating continued withdrawals into long‑term custody despite recent volatility.
  • Ethereum outperformed with a 6–7% rise toward $3,300–$3,400, supported by improving technicals and recent interest tied to Ethereum-focused ETF developments.