Bitcoin Rallies Fail At $94k Despite Fed Policy Shift: ’s Why

Bitcoin price breakouts continue to be rejected at $94,000, even as traders’ long-term view of US monetary policy and the crypto market turns bullish.

Bitcoin’s (BTC) price action remained underwhelming this week after another failed attempt to reclaim the monthly volume-weighted average price (VWAP), with BTC consolidating near $90,000 following the Federal Reserve’s 0.25% interest rate cut. The market continued to reject any meaningful push above $93,000, thereby limiting bullish momentum.

One Bitcoin analyst said that liquidity contraction is suppressing Bitcoin’s upside, reducing demand relative to sell pressure.

$94,000 to $98,000 remained the critical liquidity pocket, but BTC must avoid forming a bearish break of structure below $88,000.

According to crypto analyst Darkfost, Bitcoin’s struggle has little to do with sentiment swings and more to do with declining liquidity, specifically from stablecoins. Stablecoin inflows onto exchanges offer one of the most reliable signals of incoming capital, and right now that signal is flashing red.

The data showed a significant liquidity contraction: ERC-20 stablecoin inflows have declined from $158 billion in August to approximately $76 billion this month, representing a nearly 50% drop. Even the longer-term 90-day average has slipped from $130 billion to $118 billion, confirming that the trend is not temporary but structurally deteriorating.

This decline translated directly into weaker buying power. Darkfost noted that recent rebounds are not driven by strong accumulation but by periods of reduced sell pressure, meaning the market lacks the inflows needed to sustain higher highs or defend key support levels. Until fresh liquidity returns, Bitcoin’s rallies are likely to remain shallow.

Meanwhile, trader Daan Crypto Trades wrote that the broader liquidity map still indicated the $97,000–$98,000 region as the next significant magnet for price. But BTC has repeatedly failed to break $94,000, the first barrier that must be overtaken for volatility expansion.

Without that confirmation, the market remains vulnerable to sharp range reversions that continue to trap both longs and shorts.

Related: Prediction markets bet Bitcoin won’t reach $100K before year’s end

Source: CoinTelegraph