Crypto markets resumed their decline on Thursday, with Bitcoin falling 2.5% to $90,056 and ether sliding 4.3% to $3,196, erasing gains made earlier in the week. The reversal came even as global equities initially reacted positively to the U.S. Federal Reserve’s latest rate cut, highlighting an emerging divergence between traditional risk assets and digital tokens. Asia-Pacific stocks traded lower, and U.S. and European futures pointed to weaker openings, suggesting that the supportive macro environment may not be enough to revive sentiment in crypto.

A Market Decoupling From Broader Risk Sentiment

Bitcoin’s drop stands out because it follows a pattern of underperformance relative to global markets. Historically, lower interest rates have buoyed speculative assets, including cryptocurrencies, by reducing the opportunity cost of capital and bolstering liquidity. Yet the latest price action hints at lingering structural concerns among traders.

Tony Sycamore, market analyst at IG in Sydney, noted that crypto’s failure to rally alongside equities underscores a deeper hesitation. He argued that investors still need more convincing evidence the market has worked through the sharp selloff on October 10, a decline that rattled leverage-heavy positions and exposed persistent fragilities in the digital asset ecosystem. For now, he said, that reset “doesn’t look like it’s there.”

This decoupling suggests the market is entering a period where macro catalysts are playing a secondary role to crypto-specific supply-and-demand dynamics, regulatory uncertainty, and shifting institutional behavior.

Forecasts Reset as ETF Demand Becomes the Only Growth Engine

A more consequential signal came from Standard Chartered, which sharply reduced its long-term outlook for Bitcoin. The bank now expects Bitcoin to reach $100,000 by the end of 2025 — half of its previous forecast of $200,000. This recalibration reflects a key shift in the way major institutions view the drivers of crypto appreciation.

According to Geoff Kendrick, the bank’s global head of digital assets research, buying activity from so-called “digital asset treasury companies” — corporates that add Bitcoin to their balance sheets — appears to have peaked. This class of buyers helped propel crypto markets in past cycles, especially during the corporate adoption wave of 2020–2021. Without their participation, future price appreciation will rely “effectively on one leg only – ETF buying.”

This concentration of demand introduces a new asymmetry: while ETFs have brought legitimacy and inflows, they also heighten the reliance on a narrower, more sentiment-driven investor base. Should inflows waver, Bitcoin’s upward trajectory could lose a key stabilizing force.

A Cautious Road Ahead

The next few months may test whether crypto can regain synchronicity with broader risk markets or whether the current divergence represents a more lasting shift. Investors will monitor ETF flows, regulatory signals, and trading-volume trends for indications of renewed conviction. While the Fed’s rate cut offers theoretical support, the crypto market is signaling that confidence — not liquidity — is the missing ingredient. Until the October washout is fully absorbed, volatility may dominate the landscape.