The Federal Reserve Chairman speaks today amidst economic slowdown and persistent inflation. Crypto traders are closely monitoring every monetary signal to predict future price movements. Bitcoin is consolidating above $122,000, with the total market capitalization hovering around $2.44 trillion.
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.
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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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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