Powell Speech Summary Sparks Suspicion: Did Fed Trigger Crypto Bounce?
Why did the crypto market suddenly bounce after Jerome Powell’s much-awaited remarks? This Powell Speech Summary reveals how the Fed pumped billions into the banking system—triggering fresh volatility across Bitcoin, Ethereum, and Solana. With traders asking what will Powell say next and how the live speech affects crypto, today’s events turned December into a dramatic “Bullisember.”
Fed Injects Massive Liquidity: Biggest Since Covid Era
In the hours surrounding the Jerome Powell speech at Stanford University, the U.S. Federal Reserve made one of its largest liquidity moves in years. While Jerome “did not comment on the economy or monetary policy,” the market-shaping action happened behind the scenes:
The New York Fed injected $13.5B through overnight repos — the 2nd-largest liquidity boost since COVID, surpassing the Dot-Com era peak. A separate round of repo operations added another ~$26B into money markets.
Source: FRED
According to FRED data, from 2020–2024, repo injections stayed near $0 billion, with only tiny spikes below $1B. But 2025 tells a different story—multiple repo jumps between $3B–$10B, culminating in a massive $29–30B spike. December 1’s $13.5B injection stands as the second-biggest liquidity shot in the entire dataset.
This sudden surge signals stress in the banking system, even though he avoided addressing it publicly.
Powell Speech Impact on Crypto: Market Turns Green Quickly
Before Jerome began speaking, the entire crypto market was deep in red—falling below a $3 trillion market cap as fear spread about potential rate-related comments. But the Powell Speech Summary shows a surprising twist: cryptocurrency rebounded immediately after the speech ended.
Here’s how the market reacted:
Global crypto market cap rose 0.24% within hours, now at $2.95T
$BTC jumped from $83,909 to $87,027, gaining ~1% in 24H, with a $1.73T market cap
$ETH ,
$SOL , and other altcoins staged strong recoveries
Jerome didn’t talk about rate cuts, inflation, or recession. But markets interpreted the huge liquidity injection as a subtle signal: The Fed is quietly supporting financial markets again. This perception directly fueled the comeback.
What’s Next? Dec 10 Fed Meeting Could Decide Crypto’s Fate
The December 9–10 Fed meeting now becomes a turning point. Because of the recent government shutdown, policymakers lack fresh economic data — meaning the committee is deeply divided:
Up to five FOMC members oppose further cutsThe Fed's Board of Governors — including three key members — wants cutsMarkets are pricing 87.2% chance of a 25bps cut and 12.8% chance of a 50bps cut
Source: FedWatchTool
Rates currently sit at 375–400 bps, and any cut would boost liquidity — a strong bullish signal for cryptocurrency.
Conclusion
This Powell Speech Summary shows an unusual combination: Jerome stayed silent on policy, yet the Federal injected massive liquidity, igniting a rebound. With Bitcoin recovering and markets stabilizing, all eyes now shift to the Dec 10 Fed meeting, which may deliver the final market-moving decision of 2025.
Disclaimer: This is for educational purposes only. Always do your own research before any investment.
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