News

August 24, 2025

Bitcoin Traders Anticipate Fed Chair Jerome Powell’s Speech, Possible Interest Rate Cut Impact on Crypto Market

"Jerome Powell addressing the Economic Symposium with a backdrop of Bitcoin emblem falling sharply on an orange line graph against a dark and midnight blue gradient background, symbolizing Bitcoin's uncertain future and potential price decline."

Bitcoin Markets Stumble in Anticipation of Powell’s Speech

Observations indicate that Bitcoin traders have been reducing their holdings ahead of a much-anticipated speech by Federal Chairman Jerome Powell at the Jackson Hole Economic Policy Symposium. The worldwide cryptocurrency community has been keeping a close eye on events, anxious over potential negative repercussions following Powell’s speech. Their main concern revolves around the possibility that Powell might not signal the likelihood of an interest rate cut come September. Bitcoin’s prices have shown a downward trend in consonance with traders’ activities, thus revealing investor sentiment.

Expectations of a Bearish Market Development

The behavior of traders has reflected cautiousness and an anticipation of bearish market outcomes. Bitcoin trading prices have taken a roughly 10% dip since their all-time high of $124,290 on 14th August, a decline reflecting the general sentiment of traders. The anticipation from traders stems from the thought that Powell might take a hawkish approach in his address.

Bitcoin’s Relationship with the Fed’s Monetary Policy

These feelings are not unjustified since Bitcoin’s performance in the market is delicately interwoven with the monetary policy decisions of the Federal Reserve. Reductions in interest rates generally motivate investors to increase their risk-taking activities, enhancing their appetite for stocks and high-risk assets including cryptocurrency. Therefore, Powell’s address could significantly affect Bitcoin’s price movement either positively or negatively.

The Influence of the Cryptocurrency-USD Exchange Market

Another element that has raised concerns among traders is a price discrepancy in the spot Bitcoin market between the most significant public crypto-exchange in the United States, Coinbase, and the largest global exchange, Binance. This price differential led to increased bitcoin selling in the U.S, which further fueled the bearish sentiment among traders.

Probable Outcomes Post-Powell’s Address

On the upside, the reassessment of holdings by traders in the days leading up to the Jackson Hole Economic Policy Symposium could help reinstate stability before the event, especially if Powell’s address holds no surprises, in which case traders could buy on the news. Some analysts have also reported a decrease in the probability of the Fed lowering its target rate by a quarter of a percentage point according to CME FedWatch, reducing it from 92% a week ago to 73% now. This further indicates uncertainty and instability in the market.

Bullish Outlook for Bitcoin Despite Anticipated Downturn

Despite these market nerves, there are still experts who remain optimistic about Bitcoin’s long-term future. Philippe Mouls and Pat Tschosik from Ned Davis Research have stated that the current market fluctuations do not correlate with the typical signs that come before major declines. In light of historical factors, they assert that the ongoing ‘secular bull’ for Bitcoin has not reached its peak yet. However, they have also acknowledged the need for careful monitoring of the current situation, especially with regards to two things: one, the increased proportions of non-bitcoin assets on Coinbase, and two, the significant period Bitcoin has survived without a 50% downfall.

Bitcoin as a Leading Indicator for Equities

Moreover, several industry insiders forecast that Bitcoin’s premature rise might be a positive sign for stocks and propose that Bitcoin and Ethereum could be seen as precursors to the equities market. Investors will be keeping a keen eye out over the coming weeks to see how these predictions bear out and what lies ahead for Bitcoin.

James Carter

Financial Analyst & Content Creator | Expert in Cryptocurrency & Forex Education

James Carter is an experienced financial analyst, crypto educator, and content creator with expertise in crypto, forex, and financial literacy. Over the past decade, he has built a multifaceted career in market analysis, community education, and content strategy. At AltSignals.io, James leads content creation for English-speaking audiences, developing articles, webinars, and guides that simplify complex market trends and trading strategies. Known for his ability to make technical finance topics accessible, he empowers both new and seasoned investors to make informed decisions in the ever-evolving world of digital finance.

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