Markets are reacting predictably to the Federal Reserve’s recent rate cut, with the U.S. dollar weakening, bond yields easing, and precious metals climbing, while cryptocurrencies remain in a bearish trend.
Looser Fed policy generally weighs on the dollar, lowers Treasury yields, boosts metals, and supports risk assets. Following Wednesday’s decision, the dollar index fell to a seven-week low, silver surged to a record near $64 per ounce, and the 10-year Treasury yield eased to 4.12% from 4.20%.
Crypto, however, failed to sustain early gains. Bitcoin briefly climbed above $94,000 before retreating to around $89,400, down roughly 3% over 24 hours. Ether fell 5.5%, with XRP and Solana each losing about 4%.
Adding to market pressure, AI-related stocks stumbled after Oracle reported disappointing quarterly earnings, with shares tumbling 14% and dragging down Nvidia, AMD, and Broadcom, while the Nasdaq fell 1.2%.
Bitcoin mining and crypto-linked stocks also weakened. Hut 8, Iren, Cipher Mining, and Riot Platforms dropped 5%–6%, Strategy fell 6.4%, Coinbase slid 5%, and Robinhood fell 8.3% after reporting a slowdown in crypto trading volumes for November.
