Bitcoin Drops Below $112K as Traders Eye Powell’s Speech — What’s Going On?

Bitcoin tumbled beneath 112,000 on Tuesday as traders braced for Fed Chair Jerome Powell’s upcoming speech, hoping his remarks will supply readability on US financial coverage.

It was final down almost 3% to $111,856. The broader crypto market fell sharply, with complete market cap sliding 3.2% to $3.8 trillion. Ethereum dropped 4% to $4,012, BNB plunged 10% to $1,205 and XRP slipped 5.5% to $2.47.

Markets method Powell’s speech amid sharp swings, fueled by renewed US-China commerce tensions and steep declines in digital asset costs.

Powell is scheduled to talk on the financial outlook and financial coverage on the NABE Annual Meeting in Philadelphia on Tuesday. Analysts anticipate his tone to sway sentiment on price cuts and whether or not the crypto descent deepens or stabilizes.

Political Uncertainty Fuels Investor Anxiety Across Risk Assets

Last week, President Donald Trump escalated tensions by asserting plans to impose 100% tariff on all Chinese items imported to the US beginning Nov. 1. The transfer triggered large market turmoil, wiping greater than $125b from international crypto valuations in hours.

Markets found some footing on Monday after Trump softened his tone on China. Still, the shock left merchants on edge and primed for additional swings.

Lukman Otunuga, senior market analyst at FXTM, mentioned the response “underscores simply how delicate buyers stay to political danger and commerce uncertainty.” He added that the US–China tensions and a dragging authorities shutdown may hold markets jittery.

Large Liquidations Expose Fragile Leverage But Highlight Strong Projects

Kevin Lee, chief enterprise officer at Gate, expects downward strain to persist close to time period as geopolitical dangers and tariffs weigh on sentiment. He sees the Fed’s anticipated price lower on Oct. 28–29 as a doable turning level to ease circumstances for danger property.

Yannik Schrade, CEO of Arcium, argued that giant liquidations just like the weekend’s $19b wipeout act as a market filter, exposing weaker leveraged positions whereas drawing focus to utility-driven tasks.

He cited Zcash’s relative resilience and Umbra’s $155m elevate in confidential DeFi infrastructure as indicators of focus amid volatility.

Attention now turns to Powell, whose remarks may determine whether or not crypto finds reduction or slides deeper into decline.

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