Crypto Market Drops as Fed Chair Powell Signals No Rate Cut

Crypto Market Drops as Fed Chair Powell Signals No Rate Cut

Jerome Powell's remarks on potential rate cuts stir crypto markets, causing Bitcoin to drop by 5%.
Key Points:
  • Jerome Powell’s remarks impact crypto prices significantly.
  • Bitcoin sees immediate 5% drop after his announcement.
  • Market anticipates potential future shifts in monetary policy.

Federal Reserve Chair Jerome Powell stated on October 29, 2025, during an FOMC press conference that a December rate cut is unlikely, causing the crypto market to tumble.

Powell’s announcement leads to immediate declines in Bitcoin and related assets, highlighting the sensitivity of crypto markets to U.S. monetary policy signals and economic forecasts.

Jerome Powell, Chair of the Federal Reserve, indicated in a press conference that a December rate cut is not assured. According to Powell, “A rate cut in December is far from a foregone conclusion.” This statement caused a sharp downturn in the crypto market, with notable declines in Bitcoin.

Affected heavily by Powell’s remarks, Bitcoin’s value dropped approximately 5%. As Powell’s guidance influences markets, investors monitor potential financial shifts with interest.

Powell’s statement sent ripples across the financial sector, particularly impacting the crypto market and Bitcoin holders. Investors and traders adjusted their positions, leading to sell-offs in major cryptocurrencies.

The decision not only disrupted crypto investments but also highlighted the influence of US monetary policy. The uncertainty around rate cuts continues to heighten market sensitivity to Fed announcements.

No new business or regulatory measures have emerged directly from the Federal Reserve’s latest policies. However, analysts suggest keeping an eye on emerging trends in response to their economic strategies.

Future regulatory actions could shape market reactions further, guided by trends observed in the Federal Reserve’s past decisions. Historical responses to similar announcements show a pattern of market corrections and potential strategic shifts by investors.