- Bitcoin fell below $111,000 after aggressive remarks from Fed Chair Jerome Powell.
- Powell said a December interest-rate cut “is not a foregone conclusion.”
- Major cryptocurrencies such as Ethereum, XRP and Solana also suffered losses.
Bitcoin and the broader cryptocurrency market plunged sharply after Federal Reserve Chair Jerome Powell signaled that a long-expected interest-rate cut in December is not guaranteed, reversing market expectations for further easing.
Powell’s blunt comments immediately spooked investors, sending Bitcoin below a key support level and triggering a broad sell-off in digital assets.
Although the Fed delivered a modest 25-basis-point cut to the policy rate, Powell’s guidance on the future path of monetary policy dominated market reactions and drove the negative move.
Powell cools hopes for a December rate cut
At the conclusion of the Federal Open Market Committee (FOMC) meeting, Powell announced a 0.25% reduction to the policy rate, bringing it to a range of 3.75–4.00%.
However, he quickly tempered market optimism by taking a cautious stance on further moves, stating that a December cut “is not a foregone conclusion.”
Powell explained that the central bank needs more economic data—especially since the recent government shutdown obscured key indicators.
“We may need to slow the pace of policy adjustments. I hope to get more data by December,” he said at the press conference.
He also disclosed growing division within the committee.
“An increasing number of Fed members want to delay rate cuts,” Powell continued, adding: “After two consecutive rate cuts, some members are taking a wait-and-see approach. The view that we should wait at least one cycle is spreading.”
Bitcoin leads the market rout
The market’s response to Powell’s unexpected caution was swift and decisive.
Bitcoin, which had been trading around $113,000 before the press conference, broke the $110,000 support level minutes after his remarks and hit an intraday low near $109,000.
As of Thursday, the token was still trading around $110,000, down roughly 2% from the previous day.
Weakness rippled across the crypto ecosystem.
According to CoinMarketCap, other major cryptocurrencies also posted notable losses:
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Ethereum (ETH) fell 1.93% to $3,899.87.
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XRP fell 2.74% to $2.53.
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Solana (SOL) fell 1.04% to $192.37.
A silver lining: Fed ends quantitative tightening
Powell’s press conference was not entirely hawkish. He also announced the official end of the Fed’s balance-sheet runoff program, known as Quantitative Tightening (QT), which could boost liquidity in the financial system.
“We have decided to end QT effective December 1,” Powell said. He noted that the Fed’s balance sheet has shrunk by $2.2 trillion over the past three and a half years.
“We now believe we are close to having sufficient reserves,” he added, signaling a move toward normalizing the balance sheet.
With the Fed behind them, investors turn to the U.S.-China summit
With the Fed’s policy outlook clarified for now, investors are shifting focus to the next major potential catalyst: the U.S.-China summit.
After the crypto market tumble, traders are watching the meeting between U.S. President Donald Trump and Chinese President Xi Jinping as a possible source of positive headlines that could spur a rebound.
The high-stakes meeting is scheduled for Thursday morning at the “Naraemaru” facility near Gimhae airport airbase.