Bitcoin Price Drops Following Jerome Powell’s Statements
The Bitcoin price experienced a sharp reaction following Federal Reserve Chairman Jerome Powell’s speech after the interest rate decision. Powell effectively ruled out any rate cuts, which triggered a decline in Bitcoin, as well as stocks and gold.
According to the Fed chairman, the US economy remains too robust to justify an interest rate cut. He particularly highlighted uncertainties related to the impact of tariffs imposed by the Trump administration. Markets, which had expected a more accommodative stance from the Fed, were therefore surprised and reacted accordingly.
Bitcoin’s Quick Recovery
Although Bitcoin initially dropped following these announcements, it’s already rebounding. This is because the macroeconomic context remains highly favorable for the flagship cryptocurrency. Several elements are supporting its price :
- Investors’ risk appetite continues to increase in financial markets. They are increasingly moving toward more volatile assets, such as Bitcoin.
- The trade agreements recently concluded by the Trump administration with Japan and the European Union help to ease tensions and boost positive market sentiment.
- The “One Big Beautiful Bill” fiscal stimulus plan deployed by the US government is beginning to show its effects.
- US companies have reported solid earnings, strengthening investor confidence.
- Economic indicators in the US have remained positive this week.
Most importantly, investors are anticipating Jerome Powell’s replacement as Fed chair in 2026 by a chairman more aligned with Donald Trump’s positions, and therefore more inclined to cut rates. This should provide powerful support for Bitcoin in the medium term.
