FED Meeting Focus: Will Jerome Powell’s Speech Ignite Bitcoin Rally?

All eyes turn to Washington as the Federal Reserve prepares to deliver its latest monetary policy verdict.

The Powell Factor

Market analysts scrutinize every word from the Fed chair, hunting for clues about interest rate trajectories. Bitcoin traders position themselves for potential volatility spikes.

Historical Precedents

Previous Fed announcements triggered double-digit percentage moves across crypto markets. The digital gold narrative strengthens whenever traditional monetary policy faces uncertainty.

Institutional Positioning

Major funds adjust their crypto exposure ahead of the meeting. Some Wall Street veterans still dismiss Bitcoin while quietly accumulating positions—because nothing says conviction like contradictory actions.

The Decoupling Debate

Will Bitcoin finally break its correlation with traditional markets? Or just provide another talking point for finance pundits who've been wrong about crypto since 2013.

Bitcoin’s momentum cooled today as traders turned cautious ahead of key macroeconomic events, including the release of the FOMC Minutes and Fed Chair Jerome Powell’s upcoming speech. 

The top cryptocurrency, which recently touched a fresh all-time high of $126,200, has slipped over 2% in the past 24 hours and is currently trading NEAR $122,495. This pullback comes as investors digest a volatile mix of rising inflation, fears of a prolonged U.S. government shutdown, and uncertainty around future monetary policy direction.

The broader crypto market mirrored Bitcoin’s cautious tone, with major altcoins like Ethereum and Solana experiencing mild corrections. As risk sentiment wavers, the next major move in Bitcoin and the cryptocurrency market may hinge on whether the Federal Reserve adopts a dovish or hawkish stance this week.

FOMC Minutes and Jerome Powell Speech in Focus

The Federal Open Market Committee (FOMC) Minutes, due for release today, are expected to provide critical insight into the central bank’s thinking regarding future interest rate cuts. 

Meanwhile, Fed Chair Jerome Powell is scheduled to speak on Thursday, addressing inflation trends, the cooling U.S. labor market, and the economic risks posed by Washington’s ongoing budget gridlock.

“Investors will be closely watching Powell’s remarks for any hints about the Fed’s policy trajectory,” said Michaël van de Poppe, a prominent crypto analyst. “A dovish tone could quickly reignite Bitcoin’s bullish momentum, while hawkish signals may extend the current pullback.”

Treasury yields have steadied near 4.13%, while the U.S. Dollar Index (DXY) has climbed toward 99, signaling renewed strength in the greenback. This shift has put pressure on Bitcoin, which historically performs better when the dollar weakens. 

At the same time, gold and silver prices continue to rise as investors pivot to safe-haven assets, a move often referred to as the “debasement trade”, where money flows into alternatives like gold and Bitcoin to hedge against currency erosion.

Analysts Split on Bitcoin’s Next Move

Despite the recent price dip, sentiment among top crypto analysts remains largely optimistic. Michaël van de Poppe noted that profit-taking after a new all-time high is normal, calling the retracement a “healthy reset” and a potential.

CrediBULL Crypto also maintained that Bitcoin’s trend remains bullish, suggesting that the market may be entering acapable of triggering another major rally. 

In contrast, analyst Ted Pillows cautioned, 

“Failure to hold above the $120,000 support zone could push bitcoin lower toward $117,000–$118,000 before any meaningful recovery.”

Bitcoin Awaits Macro Signals

As the Fed’s decisions loom, Bitcoin’s short-term direction rests squarely on macroeconomic signals. A dovish tone from the Fed could revive the rally, while a stronger dollar and hawkish policy hints may keep BTC in consolidation. Traders are now watching the $120K level closely, a make-or-break zone that could determine Bitcoin’s next major price move.

“With the FOMC Minutes and Powell speech on the horizon, Bitcoin investors should remain vigilant and monitor key support levels,” added van de Poppe. “This week could set the tone for Bitcoin’s trajectory in the final quarter of the year.”