Bitcoin (BTC) Dips 3.2% After Fed Chair Powell Strikes Hawkish Tone

It’s barely a ripple in the charts compared to the bullish surge that followed Donald Trump’s election win, but crypto markets took a modest hit

Crypto markets dipped slightly on Thursday evening following a speech by Federal Reserve Chair Jerome Powell.

The markets saw a modest downturn on Thursday after Federal Reserve Chair Jerome Powell stated that the economy “isn’t signaling any urgency for rate cuts” during a speech at a Dallas conference.

“Current economic strength allows us to proceed cautiously in our decision-making,” Powell added.

The market reacted swiftly to Powell's comments, with Bitcoin (BTC) slipping 1.5% to $88,300 within minutes. The apex crypto eventually dipped further, trading down 3.2% over the past 24 hours to reach $88,000.

The Fed’s hawkish tone sent ripples beyond crypto. The CME FedWatch tool now places the odds of a December rate cut at 62%, down from 83% just a day prior.

This news also impacted traditional markets, with the Nasdaq shedding 0.75% before the bell, marking a retreat from recent highs.

However, despite this slight dip, crypto markets remain in a strong uptrend. Bitcoin is still up 15% for the week, while several altcoins, including Cardano (ADA), XRP, NEAR, and Stellar (XLM), have seen gains ranging from 20% to 40%.

The question now is whether this is a temporary pause or the first sign of fading bullish momentum.

Crypto holders had other reasons to be thankful on Thursday, as it appeared increasingly likely that SEC Chairman Gary Gensler is preparing to step down.

Gensler has faced mounting pressure from crypto industry leaders and regulators over his handling of digital asset regulation. This culminated in 18 U.S. states filing to sue the SEC and its commissioners.

The lawsuit, signed by 18 Republican Attorneys General, alleges that the agency has committed “gross government overreach” with its regulation by enforcement crusade against the $3 trillion industry, ultimately infringing on states' rights to regulate their economies.