Bitcoin Price in USD Hits $88.8K as Market Absorbs Fed's Hawkish Pivot

Bitcoin price in USD has experienced notable pressure this week, retreating to around $88,800 as market participants grapple with mixed signals from the U.S. Federal Reserve. After briefly spiking above $93,000 yesterday, BTC has pulled back significantly, reflecting the broader volatility plaguing digital assets in the face of policy uncertainty. The latest bitcoin price data shows the asset trading with cautious momentum following the Fed’s recent monetary policy decision.

The retreat in bitcoin price comes on the heels of the Federal Reserve’s decision to cut rates by 25 basis points, bringing the benchmark rate to 3.50%-3.75%. While this move had been widely anticipated by markets, Fed Chair Jerome Powell’s relatively conservative commentary during the announcement—coupled with a notably divided FOMC that voted 9-3 on rate cuts—has tempered enthusiasm for risk-on trades. Three committee members broke ranks: one advocating for a more aggressive 50-basis-point reduction, while two opposed any cut. This fragmentation within the Fed’s leadership has signaled to investors that further rate relief may not be forthcoming, pressuring speculative assets like Bitcoin.

Fed Policy and the “Buy the Rumor, Sell the News” Pattern

Market analysts have characterized the recent bitcoin price decline as a textbook “sell the news” scenario. Since markets had largely priced in the rate cut weeks in advance, the actual announcement provided little new positive catalyst. Instead, Powell’s cautious tone and the evident skepticism among FOMC members about future cuts have prompted traders to lock in profits rather than accumulate positions. The divergence between expected loosening and actual policy messaging illustrates why bitcoin price in USD has struggled to maintain momentum despite the rate reduction.

The Institutional Divide: Vanguard’s Skeptical Stance on Bitcoin Value

Despite launching bitcoin ETF trading for its $12 trillion asset base, Vanguard’s leadership has made clear that the firm remains fundamentally unconvinced of Bitcoin’s long-term investment merit. John Ameriks, Vanguard’s global head of quantitative equity, provided blunt commentary this week, describing Bitcoin less as a productive asset and more as a speculative collectible—comparable to viral plush toys that gain value through hype rather than fundamental economics.

Ameriks highlighted Bitcoin’s lack of cash flows, income generation, and compounding properties as core reasons Vanguard struggles to justify it within traditional investment frameworks. “Absent clear evidence that the underlying technology delivers durable economic value, it’s difficult to think of Bitcoin as anything beyond a digital novelty,” he said, according to Bloomberg reports. This skepticism underscores a key tension: while Vanguard has broadened retail access to spot Bitcoin ETFs following their successful track record since January 2024, the firm’s cautious positioning suggests it views the expansion as a client accommodation rather than an endorsement of the asset class itself.

Contrasting Signals: Banks Embrace Bitcoin Price Momentum

The divergence between institutional skeptics and active adopters became starker this week as traditional banking giants moved aggressively into spot bitcoin trading. PNC Bank announced it became the first major U.S. lender to offer direct spot bitcoin access to its Private Bank clients through a digital platform powered by Coinbase’s infrastructure. This launch follows a strategic partnership inked in July and represents a watershed moment for Wall Street’s engagement with cryptocurrency.

Bank of America further signaled shifting institutional sentiment by recommending its wealth management clients allocate between 1% and 4% of portfolios to digital assets. This guidance marks a notable reversal from previous years when large banks distanced themselves from crypto exposure. The combination of these moves demonstrates that bitcoin price in USD is increasingly supported by institutional infrastructure and strategic positioning, despite voices like Vanguard questioning the underlying fundamentals.

Current Bitcoin Price Snapshot and Market Outlook

As of the latest update, bitcoin price in USD stands at approximately $88,800, representing a 1.67% gain over the past 24 hours. The circulating supply remains near 19.98 million BTC, with total market capitalization reaching roughly $1.77 trillion. These figures reflect the stabilization occurring after recent volatility, though continued uncertainty around Fed policy and institutional sentiment suggests bitcoin price may face further fluctuations in coming weeks. The interplay between macroeconomic policy, corporate adoption, and speculative trading continues to define the near-term trajectory for digital asset valuations.