Haciyev Reşit 
The cryptocurrency markets are closely watching U.S. Federal Reserve (Fed) Chair Jerome Powell today. Powell is scheduled to speak at the Greater Providence Chamber of Commerce at 12:35 p.m, where he is expected to deliver critical messages on monetary policy. Investors in both traditional and crypto markets are preparing to adjust their positions based on potential signals from Powell’s remarks.
What to Expect from Powell?
In recent weeks, the Fed entered a new phase by cutting its policy rate by 25 basis points (0.25%). Following this decision, attention has turned to whether further rate cuts will follow.
Economists and market analysts expect Powell to emphasize the following points in today’s speech:
- Data-driven approach: The Fed’s future decisions will depend largely on inflation and employment data.
- Inflation risk: Powell may stress that persistently high inflation still poses a threat.
- Labor market: Weak labor data could give the Fed room for additional rate cuts.
According to analysts, Powell is unlikely to adopt a fully hawkish stance, but may speak in a tone described as “cautiously dovish.”
Key Levels for Bitcoin (BTC)
Ahead of Powell’s remarks, Bitcoin is fluctuating between major support and resistance levels.
- Current Status: BTC has rebounded from strong support at $111,400 and is now testing critical resistance around $113,000.
- Bullish Scenario: If Powell signals further rate cuts or adopts a dovish tone, Bitcoin could climb toward the $114,000 – $115,500 range.
- Bearish Scenario: If Powell takes a more neutral or cautious stance, BTC may retreat back to the $111,400 support. A break below this level could trigger deeper declines.
Crypto traders are paying close attention to Powell’s wording, particularly references to interest rates, inflation, and economic growth.
Altcoin Market Outlook
Alongside Bitcoin, the altcoin market is also at a critical juncture.
- The total market capitalization (excluding BTC and ETH) is currently trying to hold at a key trendline.
- If these support levels hold, altcoins could recover and move toward the all-time high market cap of $1.16 trillion.
- However, if the trendline breaks, the $920 – $960 billion range could come into play for altcoins. This scenario would likely create strong selling pressure across the market.
- Investors note that in the short term, the movements of major altcoins—including Ethereum (ETH)—will remain closely tied to Bitcoin’s direction.
Why Are Markets So Focused on Powell?
The Fed’s monetary policy decisions have a direct impact on crypto markets. A low-interest-rate environment typically:
- Increases demand for risk assets,
- Supports liquidity,
- Strengthens bullish trends in Bitcoin and altcoins.
On the other hand, if rate cuts remain limited or if the Fed delivers cautious messages, risk appetite can weaken, creating selling pressure in crypto assets.
Today’s Speech Will Set the Tone
Powell’s speech today will not only provide clues about the Fed’s monetary policy path but will also play a major role in shaping the short-term direction of Bitcoin and altcoins.
For crypto investors, the key levels to watch are:
- Bitcoin: $111,400 support, $115,500 resistance
- Altcoin Market: $1.16 trillion target, $920 billion risk zone
All eyes are now on Powell. The tone of his speech will determine whether the crypto market sees a new rally or a correction in the coming days.
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