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Fed Chair Jerome Powell’s Speech Tomorrow Could Trigger a Crypto Market Crash – Here’s What to Expect

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Federal Reserve Chair Jerome Powell is ready to ship a keynote speech on the U.S. financial outlook and financial coverage on the National Association for Business Economics (NABE) annual assembly in Philadelphia on Tuesday.

The speech, titled “Economic Outlook and Monetary Policy,” comes at a unstable time for world markets reeling from renewed U.S.–China commerce tensions and sharp corrections in digital belongings.

Powell’s remarks may affect expectations round rate of interest cuts and broader financial coverage, probably figuring out whether or not the present downturn in crypto worsens or stabilizes.

Crypto Markets Brace for Powell’s Speech After Trump Tariff Turmoil

Last week, President Donald Trump reignited commerce tensions with Beijing by announcing plans to impose a 100% tariff on all Chinese items imported into the United States beginning November 1.

The announcement rattled markets worldwide, with the entire crypto market cap plunging by over $125 billion inside hours.

Bitcoin, which had climbed above $122,000 earlier within the week, plunged under $105,000 following Trump’s announcement and briefly dipped underneath $102,000 on Saturday.

Ethereum fell practically 20% throughout the identical window, whereas Solana, XRP, and BNB recorded losses between 12% and 18%.

The sharp decline triggered large liquidations throughout exchanges. Data from CoinGlass showed over 1.66 million traders were wiped out in 24 hours, leading to $19.33 billion in liquidated positions.

Bitcoin and Ethereum alone accounted for practically $10 billion of these losses, making it one of many yr’s most extreme deleveraging occasions.

Additionally, the Crypto Fear & Greed Index plunged from a “Greed” stage of 64 on Friday to 27 (“Fear”) on Saturday, its lowest in six months.

According to Santiment, Friday’s sell-off was not nearly tariffs.

The analytics agency stated retail merchants have been fast to “rationalize” the downturn by blaming the U.S.–China standoff, however deeper structural components have been at play, similar to extreme leverage and overextended lengthy positions.

Analysts at The Kobeissi Letter agreed, describing the event as a “pressured unwind” in an overcrowded market closely biased towards lengthy publicity.

Analysts say Powell’s upcoming remarks may both deepen or stabilize the present market turmoil. Traders are watching intently for any steering on the timing and dimension of potential rate of interest cuts.

Adding to the uncertainty, the Federal Reserve is expected to minimize rates of interest by 25 foundation factors in each October and December, with futures markets exhibiting 97% and 89% odds, respectively.

Powell’s Tuesday deal with could make clear the central financial institution’s view on inflation, development, and the influence of tariffs on the U.S. economic system. His tone may both reassure markets or exacerbate fears of an financial slowdown.

A extra hawkish tone from Powell, suggesting charges will keep greater for longer, may reignite promoting stress throughout crypto and equities, each of which have traded more and more in sync with broader danger sentiment.

Bitcoin and Ether Rebound as Trump Signals Softer Tone Toward China

While markets partially rebounded on Monday, the restoration stays fragile. Bitcoin rose 4.5% to $115,459, whereas Ether gained 11.3% to $4,161 after Trump and Vice President JD Vance struck a softer tone on Sunday, indicating openness to commerce talks with Beijing.

“Don’t fear about China, it is going to all be fantastic,” Trump posted on Truth Social, calling Chinese President Xi Jinping “extremely revered” and suggesting the U.S. wished to “assist, not harm” China.

Still, tensions stay high. Beijing has warned that it will retaliate if Washington enforces the 100% tariffs.

China’s commerce ministry stated the nation “doesn’t need a commerce struggle however shouldn’t be afraid of it,” vowing to “take resolute measures” to shield its pursuits.

Meanwhile, in commodities, gold and silver extended their rallies as traders sought security. Gold hit $4,200 per ounce, whereas silver touched $51.70, each reaching document highs.

Bank of America raised its 2026 gold worth forecast to $5,000, citing persistent geopolitical dangers, robust central financial institution demand, and rising expectations for Fed price cuts.

In April, President Donald Trump imposed sweeping tariffs of up to 125% on Chinese imports after unveiling a broader coverage that established a 10% baseline tariff on all imports and launched reciprocal duties.

China retaliated instantly with equal measures, warning it might “battle to the top.”

In May, the United States and China agreed to temporarily roll back their escalating tariffs, providing a transient reprieve to markets rattled by months of financial brinkmanship.

The deal, introduced in a joint assertion from Geneva, grants each side a 90-day window to negotiate additional cooperation.

Under the settlement, Washington will slash tariffs on Chinese imports from 145% to 30%, whereas Beijing will minimize its personal levies on U.S. items from 125% to 10%.

The submit Fed Chair Jerome Powell’s Speech Tomorrow Could Trigger a Crypto Market Crash – Here’s What to Expect appeared first on Cryptonews.

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