Crypto traders were bracing for impact and Jerome Powell delivered it.
Right after the Fed Chair stepped up to the mic with a colder-than-expected tone, the entire crypto market reacted almost instantly. What traders expected to be a calm follow-up to the recent rate cut turned into a reality check.
What actually happened?
Within hours of Powell’s speech:
Bitcoin dropped nearly 4%, slipping to around $108K.
Ethereum fell over 4%, sliding back toward the low-$4K / upper-$3K zone.
Solana took one of the hardest hits, dropping more than 6%.
This wasn’t a random dip it was a direct response to Powell’s message.
Why did the market freak out?
It’s simple:
Even after cutting rates by 25 basis points a day earlier, Powell warned that another rate cut in December is “not guaranteed.”
That one line was enough to rattle risk assets across the board.
Crypto thrives on liquidity and confidence. When the Fed signals uncertainty, it hits the market right where it hurts sentiment. Traders were expecting more easing, more money flowing, more support for speculative assets. Instead, Powell pressed the brakes.
The ripple effect
His sombre tone sent a wave through every major chart:
Bitcoin’s momentum stalled.
Ethereum lost its short-term breakout structure.
Solana, which had been riding strong bullish energy, saw the sharpest reversal.
The message to the market was clear: “Don’t get too comfortable.”
What this means going forward
This wasn’t a blow-up or a collapse it was a reminder.
Crypto is still heavily tied to macro signals, and Powell’s voice is louder than any influencer, any narrative, or any chart pattern.
If December brings another cautious stance from the Fed, expect more volatility.
But if Powell turns even slightly dovish again, the same coins that dipped today could rebound just as fast.
