Bitcoin Updates Today: Bitcoin Shows Strength as Fed's Shift to Dovish Stance Eases Powell's Ambiguity
- Fed Chair Powell's speech triggered sharp Bitcoin swings, dropping 2% before rebounding amid mixed policy signals. - 3.75%-4.00% rate cut and QT pause injected liquidity, boosting crypto inflows as Bitcoin neared $113,000. - Political tensions and Trump's tariff rhetoric added volatility, though markets focused on Fed's dovish pivot. - 80% chance priced for December rate cut, with crypto markets embracing easing cycle despite Powell's uncertainty.
Bitcoin experienced significant volatility during Federal Reserve Chair Jerome Powell's latest
The market turbulence began after Powell spoke at a press conference following the Fed’s October 29 rate reduction. Although markets had anticipated a 25-basis-point cut—the first since 2023—Powell’s cautious approach regarding December’s decision triggered a rapid selloff. Bitcoin fell by nearly 2% immediately after his statements, resulting in $304 million in liquidations, based on data from crypto analytics firms. The losses were quickly reversed as traders interpreted Powell’s comments as an indication that more easing could be on the horizon, though not assured.
The Fed’s move to lower rates to a target range of 3.75%-4.00% was largely interpreted as a shift toward a more supportive policy stance, which has historically benefited risk assets such as Bitcoin,
Bitcoin’s rebound reflected a broader wave of optimism about the Fed’s dovish turn. The cryptocurrency climbed above $110,500 after the announcement, with crypto investment funds
The Fed’s rate reduction and the pause in QT are part of a broader easing trend that has already lifted crypto markets. Since September, Bitcoin has risen nearly 10%, regaining ground lost during October’s volatility caused by Trump’s tariff threats and the government shutdown. The current surge coincides with growing institutional interest, as spot Bitcoin ETFs have attracted $30.2 billion in inflows so far this year.
Powell’s comments also sparked political debate. President Trump
Investors are now focused on the Fed’s December meeting, where another rate cut is widely expected. Markets currently estimate an 80% probability of a 25-basis-point reduction, with additional easing anticipated in 2026. For now, Bitcoin’s strength suggests that crypto markets are welcoming the Fed’s policy shift, even as they await
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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