Bitcoin bulls face deeper pain as Fed's third rate cut fails to spark bid

Source: Cryptonews Original Title: Bitcoin bulls face deeper pain as Fed’s third rate cut fails to spark bid Original Link: https://crypto.news/bitcoin-bulls-face-deeper-pain-as-feds-third-rate-cut-fails-to-spark-bid/ Bitcoin (BTC) may experience additional price declines despite three consecutive interest rate cuts by the Federal Reserve, according to on-chain data analysis.

Fed Delivers Third Rate Cut

The Federal Reserve announced its third consecutive rate reduction on Wednesday, lowering the federal funds rate by 0.25 percentage points to a range of 3.5% to 3.75%. A Trump appointee dissented from the decision, advocating instead for a larger 0.50 percentage point cut.

On-Chain Data Shows Bitcoin Still Above Historical Bottoms

On-chain metrics indicate Bitcoin has not yet reached its historical bottom. Analysis shows realized losses currently stand at negative 18%, well above the negative 37% threshold that has historically signaled strong buying opportunities during previous market cycles.

Realized losses measure actual losses incurred by traders when selling assets, distinguishing them from unrealized losses on held positions. Lower readings typically indicate capitulation events, which have historically provided entry points for long-term investors.

Divergent Market Behavior

Despite the Fed’s monetary easing policy, Bitcoin continues to trade at support levels. Traditional safe-haven assets have outperformed digital assets in recent periods. Markets are pricing in potential additional cuts through 2026.

The negative 37% realized loss threshold has historically preceded strong Bitcoin recoveries across multiple market cycles. Current readings suggest selling pressure has not yet reached capitulation levels.

Market structure shows divergent behavior between different holder cohorts. Short-term holders are applying selling pressure, while long-term holders continue accumulating at current price levels. This divergence contributes to ongoing market volatility.

Some market participants attribute Bitcoin’s weakness to profit-taking following previous gains, while others cite regulatory uncertainty as a factor affecting market sentiment.