What Will Be Bitcoin’s Next Move After Fed Powell’s Speech?

On Wednesday (September 17), the Federal Reserve’s decision to cut interest rates and Fed Chair Powell’s cautious remarks had relatively limited impact on Bitcoin’s trajectory.

They noted that Powell’s emphasis on the weakness in the job market and his broader concerns could lead to further interest rate cuts by the Fed, thereby driving up the prices of Bitcoin and other cryptocurrencies. They also pointed out that other factors, including growth in cryptocurrency reserves, are positive.

This is the first rate cut this year after five monetary policy meetings with no adjustments, and it also comes after months of significant pressure from U.S. President Donald Trump on the Fed.

Powell told reporters, "Inflation risks are tilted to the upside, while employment risks are tilted to the downside, making the situation quite challenging... Given that our framework requires us to balance both aspects of our dual mandate, and the downside risks to employment have increased, the balance of risks has shifted accordingly." He also noted that "higher tariffs have already begun to push up prices for some goods."

Regarding Powell’s remarks, Ira Auerbach, former head of Nasdaq’s digital asset division and current head of Offchain Labs, said, "Powell characterized today’s move as a ‘risk management move.’ Although the statement mentioned slowing job growth and persistently high inflation, it did not strongly push for a 50-basis-point rate cut."

Auerbach added, "The FOMC statement and projections outline a data-dependent path for future rate cuts. Looser financial conditions in the future should support the cryptocurrency ecosystem."