Powell’s Speech Tomorrow Could Flip Crypto Sentiment: Major Events This Week Keeping Traders On Edge

Brace for impact—this week's economic calendar holds enough volatility to send crypto markets swinging in either direction.

The Powell Factor

All eyes turn to Federal Reserve Chair Jerome Powell's scheduled address tomorrow. Market participants hang on every word for clues about interest rate trajectories—the single biggest driver of digital asset valuations.

Regulatory tremors continue rattling through the ecosystem as lawmakers debate frameworks that could make or break institutional adoption. Traditional finance veterans suddenly find themselves playing catch-up with technology they dismissed for years—quite the ironic twist for billion-dollar fund managers.

Technical indicators suggest we're approaching critical support levels across major cryptocurrencies. A hawkish tone from Powell could trigger another leg down, while any dovish signals might ignite the next rally.

Remember when Wall Street called crypto a passing fad? Now they're scrambling to understand blockchain fundamentals while retail investors continue outperforming hedge funds—the ultimate Wall Street humiliation.

EXPECT VOLATILITY! pic.twitter.com/UYuBEe3a4W

— crypto Rover (@rovercrc) September 21, 2025

Powell’s Speech & Crypto Market Sentiment

Tomorrow, observers will dissect Powell’s comments for clues about upcoming October and December rate meetings. Moreover, it’s true that the global crypto market is bracing for a volatile week. After hovering above the $4.1 trillion mark for most of the weekend, digital assets took a sharp turn today, as over $75 billion evaporated in a few hours’ time.

Twitterati is wondering if volatility is the risk or is there is opportunity hiding in it? X user ‘Crypto Ex-Insider’ says, “Powell speeches often MOVE markets more than the data itself. One word shift in tone can reprice trillions.”

Meanwhile, BTC has fallen to $112,749 – its lowest levels in the last ten days. According to an analysis shared by trader Merlijn, Bitcoin’s long-term chart once again echoes its historical cycle patterns.

bitcoinPriceMarket CapBTC$2.25T24h7d1y

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Bitcoin Hits 10-Day Lows. But There’s More!

According to the analysis, every major bull run since 2017 has included a mid-cycle “trap”  a sharp correction that forces weaker hands out before the market resumes its rise.

In 2017, Bitcoin rose rapidly, and then it experienced a sharp decline that shook confidence, only to climb to historic levels a few months later. The same pattern repeated in 2021, with prices freezing around $60,000 and then surging up.

The present chart of Merlijn also indicates 2025 to be another instance of this pattern.

Key Takeaways

• Macro factors—traditionally the purview of Wall Street and central banks—now directly shape digital asset valuations, trading patterns, and investor psychology.

• “Monetary policy is entering a new era,” noted The Kobeissi Letter, referencing the historic interplay between interest rate cuts, stagflation, and the growing wealth gap.