Powell’s Hawkish Tone Sends Crypto Reeling: Market Braces for Next Move

Jerome Powell just dropped a monetary policy bombshell—and crypto markets are feeling the aftershocks.

The Fed Chair's latest remarks sent digital assets tumbling, triggering the sharpest single-day decline since August. Bitcoin shed nearly 8% in hours while altcoins followed suit with even steeper losses.

What Powell Actually Said

No sugar-coating from the Fed chief this time. Powell doubled down on inflation concerns and signaled tighter policy ahead—exactly what risk assets didn't want to hear.

Traders immediately priced in higher rates for longer. The dollar surged. Crypto, that perennial rate-sensitive asset, got crushed.

The Technical Damage

Critical support levels shattered across major cryptocurrencies. Bitcoin's $45,000 floor? Gone. Ethereum's consolidation pattern? Broken.

Leveraged positions got liquidated at a pace not seen in months. The fear and greed index flipped from neutral to extreme fear in under six hours.

Where Crypto Goes From Here

This isn't the first Fed-induced panic—and it won't be the last. Crypto's correlation with traditional markets remains its greatest weakness and occasional strength.

History shows these Fed-speech selloffs often create buying opportunities. But with Powell turning full hawk, the path of least resistance points down for now.

Meanwhile, traditional finance types are probably chuckling into their spreadsheets—watching crypto traders relearn Macro Economics 101 the hard way.