Powell’s September 23 speech adopted a cautious “wait-and-see” stance that sparked short-term volatility across crypto markets; Bitcoin briefly dipped before reclaiming gains. Analysts expect near-term swings around macro releases but remain broadly bullish on a mid-term recovery.
Fed caution triggered immediate volatility in Bitcoin and altcoins.
Analysts cite upcoming unemployment and core PCE data as potential catalysts for price swings.
Market participants view recent liquidations as a healthy recalibration after elevated leverage.
Powell speech crypto market: Fed caution sparked short-term Bitcoin volatility; analysts still see mid-term upside—follow key data releases for potential price moves.
What did Powell say that impacted the crypto market?
Powell’s speech emphasized uncertainty around the path of inflation and a cautious “wait-and-see” stance, which briefly spooked markets and triggered short-term volatility. The Powell speech crypto market reaction pushed Bitcoin lower intraday before a partial rebound as traders priced fresh macro risk.
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How did markets and analysts react to Powell’s stance?
Market reaction was immediate: Bitcoin slipped to roughly $111K before recovering above $112K at the time of writing. Traders flagged increased sensitivity to upcoming macro prints—particularly unemployment claims and the core PCE index—which could trigger further intraday moves.
Analysts provided measured views. Matt Mena (21Shares) warned that stretched valuations and elevated leverage could produce bursts of volatility around data releases. Shawn Young (MEXC) noted recent liquidations could increase short-term pressure but serve as a healthy rebalancing after a $1.7B unwind. Tom Lee (Fundstrat) emphasized that Powell’s remarks were not an ominous sign for equity valuations, supporting a constructive mid-term outlook for risk assets.
Source: CoinMarketCap
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In his September 23 statement on the economic outlook, Powell said employment and inflation risks have risen, which influenced last week’s rate cut. He reiterated that the balance of risks had shifted and that the Federal Reserve would move policy closer to neutral.
“In recent months, it has become clear that the balance of risks has shifted, prompting us to move our policy stance closer to neutral at our meeting last week.”
He also highlighted persistent uncertainty around inflation and the risk of higher, more persistent inflation, noting the Fed would carefully assess this risk going forward.
“But uncertainty around the path of inflation remains high. We will carefully assess and manage the risk of higher and more persistent inflation.”
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