Bitcoin Price Fluctuated with Fed and Tariff Developments

In recent days, the price of Bitcoin has experienced significant fluctuations following the Federal Reserve's interest rate cut. After the interest rate was lowered to a range of 3.75–4.00, President Jerome Powell emphasized that a new rate cut in December was not certain, causing Bitcoin to face heavy selling pressure. With this decline, the price of Bitcoin fell to $108,000.

However, positive news following the US-China talks on Thursday morning helped Bitcoin to recover. In a statement by President Donald Trump, it was announced that tariffs on China would be reduced from 57% to 47% and that barriers related to rare earth materials would be lifted, which positively impacted the market. Following these developments, the price of Bitcoin began to rise again and aimed for the $110,000 level.

These developments affecting Bitcoin also had an impact on altcoins. During the night, significant altcoins like XRP and Dogecoin saw declines of up to %4, while assets such as Ethereum, Solana, Binance Coin, and Cardano experienced losses of around %3. However, as the day progressed, the risk appetite partially recovered along with tariff news.

The Federal Reserve's interest rate cut and the end of quantitative tightening (QT) imply a net liquidity influx into the markets. This situation may reduce pressure on the banking system, potentially increasing the market depth of riskier assets. Bitcoin and other income-generating non-yielding assets may benefit from the shift of institutional funds sitting in cash towards alternative value storage instruments.

However, it is important to note that geopolitical risks remain a decisive factor. If the US-China agreement materializes and tariffs decrease further, the strengthening of global risk perception could increase the likelihood of Bitcoin pushing toward $115,000. Conversely, if the talks take a negative turn, it could strengthen the dollar and create a new wave of volatility.