Bitcoin and Crypto: How to React to Powell’s Announcements
Jerome Powell’s speech scheduled for 2:30 PM today will be the true catalyst for crypto markets. Traders are already positioning themselves in anticipation of accommodative rhetoric that could inject more liquidity into risk assets. Historically, interest rate cuts favor cryptocurrency performance by reducing the opportunity cost compared to traditional investments.
Bitcoin is currently trading in a consolidation zone near its all-time highs. Major altcoins are following this momentum with notable gains on certain tokens, although volatility remains high. The psychological support levels at $120,000 for BTC will be crucial in the coming hours.
If Powell confirms gradual monetary easing for the remainder of the year, market sentiment could improve significantly. Capital flows into Bitcoin ETFs and declining bond yields would make cryptocurrencies more attractive. Conversely, a more hawkish tone than expected would likely trigger profit-taking and a short-term technical correction.
Key Factors to Watch in the Coming Weeks
Traders should monitor three key elements following this Fed intervention. First, the interest rate trajectory for the second half of 2025: one or more additional cuts are expected, but their magnitude remains uncertain. Second, Powell’s stance on imported inflation related to tariffs could influence the pace of monetary easing.
Third, the evolution of the US dollar against other major currencies will provide valuable insights. A weakening greenback generally favors Bitcoin, considered by many as an alternative store of value. Trading volumes on major platforms already show gradual accumulation ahead of the event.
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