Bitcoin Price Drops Below $90K as Fed Rate Cut Weakens Dollar to 7-Week Low | BTC Analysis

The price of Bitcoin (BTC) has retreated below the $90,000 threshold, following a significant policy move by the U.S. Federal Reserve. The central bank's decision to cut interest rates has triggered a sharp decline in the U.S. Dollar Index (DXY), which fell to its lowest level in seven weeks. Typically, a weaker dollar creates a favorable environment for alternative assets like cryptocurrencies, as it reduces their relative cost for international investors. However, in this instance, Bitcoin has experienced a corrective pullback. Market analysts suggest this movement may represent a short-term consolidation phase after a prolonged rally, as traders assess the broader implications of the Fed's dovish shift on liquidity and risk appetite. The interplay between traditional monetary policy and digital asset valuations remains a key focus for investors monitoring BTC price action and market volatility.