Bitcoin Dips to $106K as Powell Keeps Markets Guessing on Rate Cuts

Bitcoin takes a breather after its bull run—sliding to $106K as traders digest Powell's non-committal stance on rate cuts.

No lifeline from the Fed... yet

Jerome Powell's masterclass in central banker ambiguity leaves crypto markets hovering between hope and skepticism. 'We’ll cut when we see inflation is truly beaten'—thanks for nothing, Jay.

Traders left reading tea leaves

The usual suspects—macro uncertainty, profit-taking, and overleveraged degens—are all taking credit for today’s pullback. Meanwhile, Bitcoin’s 200-day moving average winks suggestively from the charts.

Silver lining? This is still 2025’s second-best-performing 'risk asset' (after Dogecoin-themed beachfront NFTs).

Crypto Markets Dip Following Powell Comments

Fed Chair Powell on Tuesday commented on the President’s aggressive lobbying to cut interest rates. Trump has been putting pressure to follow central banks worldwide that have acted faster.

During the European Central Bank’s annual conference in Portugal, Powell said that the decision depends on “how the data evolves.” However, he did not hint at the timing of rate cuts.

Trump and Powell have been playing a blame game recently over the Fed rate cuts. The President had sent a handwritten note to Powell on Monday, accusing the Fed Chair “for allowing this to happen to the United States.”

“If they were doing their job properly, our Country would be saving Trillions of Dollars in Interest Cost,” Trump’s note read. Besides, the President has encouraged Powell to resign before his term as chair ends in May.

“No inflation, our country’s strong, our interest rates should be 3 points lower…you’ve got a moron at the head of the Fed. He’s a moron!” – @POTUS blasts Jerome Powell as he speaks to the press on Air Force One! pic.twitter.com/wPURpZBdNj

When asked about President Trump’s pressure on Tuesday, Powell said that he is very focused on just doing his job. Further, interest rates would have lowered by now if not for the president’s tariff agenda, Powell added.

Following Powell’s comment, Bitcoin saw a 1.3% slump, trading at $105,859 on Tuesday.

“President Trump is yet again voicing his intent to remove Fed Chair Jerome Powell, and this, more than any other macroeconomic factor, has the ability to cause more short-term financial havoc,” Toledano told Cryptonews.

However, he added that these provoke short‑term moves, while long‑term direction is driven by fundamentals. “Bitcoin is only going one way as far as the arc of history is concerned.”