Bitcoin Price Drops to $90k: How Fed Rate Cut Uncertainty & AI Sector Worries Impact Cryptocurrency Market
11/12/2025
The Bitcoin price faced significant downward pressure today, falling toward the $90,000 level. This latest crypto market movement comes as investors digest a deeply divided Federal Reserve rate cut and rising concerns over AI sector profitability. This article analyzes the key factors driving Bitcoin price today and the broader cryptocurrency market slump.
A Divided Federal Reserve Dampens Crypto Market Sentiment
The world's largest cryptocurrency, Bitcoin, traded 2.2% lower at $90,063, dipping below the $90k threshold during Thursday's session. This decline follows the Fed's widely expected 25-basis-point rate cut, its third of the year.
However, the policy move was overshadowed by stark divisions among U.S. central bankers. The dissent—with some officials preferring no cut and others wanting a deeper one—highlighted significant uncertainty about inflation and economic strength. This split clouds the trajectory for monetary easing, a key support for speculative assets like cryptocurrency.
Fed Chair Jerome Powell reinforced a cautious, "data-dependent" stance. Furthermore, updated projections now signal a slower path of rate cuts ahead than markets had anticipated, reducing the tailwind of expected liquidity for the cryptocurrency market.
AI Sector Jitters Add to Bitcoin Price Pressure
Compounding the cryptocurrency market sell-off was a broader risk-aversion trend linked to the AI sector. Bitcoin price action mirrored a drop in technology stocks after Oracle's disappointing earnings report.
The company missed forecasts and flagged soaring capital expenditure on AI infrastructure, sparking worries that massive tech investments are not yet yielding profits. This shift in investor focus from speculative growth to fundamentals hurt risk appetite, directly weighing on assets like Bitcoin.
Crypto Price Today: Altcoins Experience Sharp Declines
The selling pressure was not isolated to Bitcoin. The broader cryptocurrency market saw steep losses across major altcoins on Thursday:
Ethereum (ETH) fell 4.3% to $3,192.
XRP (XRP) declined 2.6% to $2.01.
Solana (SOL) and Polygon (MATIC) dropped 4.7% and 4.1%, respectively.
Cardano (ADA) led the losses with a plunge of over 10%.
Meme tokens also retreated, with Dogecoin (DOGE) falling nearly 6%, reflecting a broad-based retreat from risk across digital asset classes.