Powell Speech Today: Crypto Markets Fall Ahead of Key Fed Remarks

How Powell Speech Today Matters for Crypto and Rate Cut Expectations

Federal Reserve Chair Jerome Powell will deliver an important address today, and global markets (both traditional and cryptocurrency) are waiting closely for his comments. The Powell speech today comes just a week before the final FOMC meeting of 2025, where the Fed will decide if a December rate cut is needed. The Fed Chair is expected to speak about inflation, jobs, and the overall health of the US economy.

Source: AshCrypto

The speech will begin at 8:00 PM ET (6:30 AM IST) at Stanford’s Hoover Institution as part of the Shultz Memorial Lecture Series. Investors will hear Jerome's talk publicly for the last time before next week’s major policy meeting.

Crypto Market Falls Before the Remarks

Ahead of the fed chair speech today, the cryptocurrency market saw a big drop.
Bitcoin fell below $86,500, and more than $144 billion was wiped out from the global crypto market. Altcoins like Ethereum, XRP, and Solana followed the same downward trend.

Source: CoinMarketCap

This sharp decline shows how sensitive the market is to the oration news and how much traders are trying to avoid risk until they know what Jerome will say. Aside the chairman speech today, other major reasons for the sudden fall includes: 

• China FUD: China again signaled opposition to cryptocurrencies.

• Whale moves: Big investors shifted into stablecoins to stay safe before the announcements.

• High leverage: Over $178M in long positions were liquidated as Bitcoin dropped.

• Seasonal weakness: Early December is often shaky for crypto-space.
  

These factors combined with anticipation for the Powell speech today created strong selling pressure.

Expectations Going Into the Powell-Speech

key themes during the Powell speech today:

• Will the Fed confirm a December rate cut?

• Will Jerome talk about weak job growth?

• Will inflation concerns remain?

• Will there be hints about future liquidity support?
  

Crypto markets usually react quickly to policy signals, so the oration could trigger sharp movement in either direction.

How the Statements Could Impact Crypto-Spaces

Markets believe the Fed Chair may hint at a 25 bps rate cut next week during the December 9–10 FOMC meeting. This would be the third rate cut in 2025, and the chairman's tone tonight will set the direction for crypto for the coming weeks.

If Powell signals that inflation is under control and the economy can handle a cut, crypto may see a relief rebound.
But if he sounds worried about inflation or slows expectations, crypto may continue its decline.

Signs about whether the Fed may restart quantitative easing (QE) in 2026 – injection of more money into the economy again to boost liquidity and support markets, are also on target.

For now, markets will closely watch inflation and employment data to see if such easing becomes necessary. Powell’s guidance in the coming months will be crucial.