Bitcoin Crashes to $110K After Powell Drops the Hawk Bombshell

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Markets

What to know:

  • Fed Chair Jerome Powell, in a stunning act of seriousness, suggested that the markets are way too optimistic about a December rate cut.
  • The shockwave sent markets into a dive-bitcoin included-now down 5% in the last 24 hours, clinging desperately to the $110,000 mark.

Ah, another day in crypto land-where a simple comment from a Federal Reserve chair can send the digital currency world into a freefall. This time, Powell decided to remind us all that he’s still very much in control of the narrative. “A rate cut in December? Don’t count your chickens just yet,” he quipped, setting off a chain reaction of panic.

For those of us who were riding high on a 90% chance of a rate cut, Powell’s statement was a cold bucket of water. With that, bitcoin dropped about $2K, now hovering at a mere $109,600. Goodbye, gains from earlier this week! It’s like watching a beautiful dream shatter, piece by piece.

And the pain didn’t stop at crypto-stocks followed suit, stumbling from modest gains to modest losses. Treasury yields jumped by 8 basis points to 4.06%, and the dollar, ever the opportunist, surged ahead. Oh, and the odds of a December rate cut? Down to 69%. It’s a good thing we didn’t bet the house on that one, huh?

Is Powell just playing tough guy with the markets, or is he really throwing cold water on the party? Time will tell, but the suspense is killing us. Meanwhile, the Fed had earlier slashed its benchmark fed funds rate by a mere 25 basis points, but that was a hawkish cut, if you can believe that. Kansas City’s own Jeffrey Schmid thought, “Nah, let’s keep it steady,” and voted to hold things down.

The government shutdown and the data blackout are making everyone a little twitchy. No new information means nobody knows what’s coming next. Marcin Kazmierczak, co-founder of oracle network RedStone, summed it up perfectly: “Markets hate uncertainty.” Guess who’s in the hot seat now? Bitcoin, and every other risk asset, for that matter. Brace yourselves for some turbulence.

On the bright side (is there one?), Paul Howard from Wincent crypto trading firm says BTC is still trying to cling to the $110,000-$120,000 range. But, with Powell’s remarks hanging like a storm cloud, prices are slightly lower. “This is just a convenient moment for some short-term accumulation,” he says. Maybe, just maybe, the markets will stabilize as we head into November.

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2025-10-29 23:01