- Bitcoin fell below $111,000 after hawkish comments from Fed Chair Powell.
- Powell said a December rate cut “is not guaranteed.”
- Major cryptocurrencies such as Ethereum, XRP and Solana also posted losses.
Bitcoin and the broader cryptocurrency markets plunged after U.S. Federal Reserve Chair Jerome Powell warned that an anticipated December interest-rate cut was not assured, reversing market sentiment that had priced in further easing.
The hawkish remarks immediately spooked investors, pushing Bitcoin below a key support level and triggering a broad sell-off across digital assets.
Although the Fed implemented the expected quarter-point rate cut, Powell’s comments about the likely path of monetary policy became the dominant factor behind the market’s negative reaction.
Powell cools hopes for a December rate cut
At the conclusion of the Federal Open Market Committee (FOMC) meeting, Powell announced a 0.25 percentage point reduction in the policy rate to 3.75–4.00 percent.
He quickly tempered market optimism, adopting a cautious stance on future moves and saying that a December cut “is not guaranteed.”
Powell explained that the Fed needs more economic data, particularly after recent government shutdowns obscured key indicators.
“We may need to slow the pace of policy adjustments. I hope to have more information by December,” he said at the press conference.
He also highlighted growing dissent within the committee.
“An increasing number of Fed participants favor delaying rate cuts,” Powell continued, adding: “After two consecutive cuts, some participants are adopting a wait-and-see approach. The view that we should wait at least one cycle is spreading.”
Bitcoin leads broad market sell-off
The market response to Powell’s unexpected caution was swift and decisive.
Bitcoin, which had been trading near $113,000 before the press conference, broke below $110,000 moments after his comments and fell to an intraday low around $109,000.
On Thursday the token was still struggling near $110,000, roughly 2% lower than the previous day.
The weakness extended across the crypto ecosystem.
According to CoinMarketCap, several other major cryptocurrencies also suffered notable declines:
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Ethereum (ETH) fell 1.93% to $3,899.87.
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XRP dropped 2.74% to $2.53.
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Solana (SOL) slipped 1.04% to $192.37.
Silver lining? Fed ends quantitative tightening
Powell’s press conference was not entirely hawkish. He also officially announced the end of the Federal Reserve’s balance-sheet reduction program, known as Quantitative Tightening (QT), which could add liquidity back into the financial system.
“We have decided to end QT on December 1,” Powell said, noting that the Fed’s balance sheet had contracted by $2.2 trillion over three and a half years.
“We now believe we are near adequate reserves,” he added, signaling a move toward normalizing the balance sheet.
With the Fed behind them, eyes turn to U.S.-China summit
With the Fed’s near-term policy path clarified, investors are turning their attention to the next potential catalyst: the U.S.-China summit.
After the crypto market rout, traders see the meeting between U.S. President Donald Trump and Chinese President Xi Jinping as a possible source of positive headlines that could spark a recovery.
The high-stakes meeting is scheduled to take place Thursday morning at the Gimhae airbase facility “Naraemaru.”