Bitcoin slides after Powell’s warning: Crypto market loses momentum amid global uncertainty

The Fed chair’s remarks cool expectations for further rate cuts, while the Trump–Xi meeting stirs volatility. The leading cryptocurrency shows signs of weakness as investors turn cautious.

Bitcoin extended its losses after comments from Federal Reserve Chair Jerome Powell dampened hopes for additional interest rate cuts this year. The world’s largest cryptocurrency dropped as much as 3.1%, briefly touching $108,000 before paring some of its losses on Thursday.

The decline followed the Fed’s widely expected decision to lower its benchmark rate by a quarter point to a range of 3.75%–4%. It was the second consecutive cut, but Powell cautioned investors against assuming that more reductions would follow soon.

His remarks triggered a wave of risk aversion, pushing Treasury yields and the dollar higher, while U.S. stock futures turned negative. Interest-rate swaps now imply about a 60% chance of another quarter-point cut in December — down from near certainty before the meeting.

Adding to the volatility, a meeting between U.S. President Donald Trump and Chinese President Xi Jinping unsettled markets. Although Trump described the talks as “incredible” and hinted at a trade deal that would immediately halve tariffs on Chinese products related to fentanyl, investors reacted warily.

Analysts suggest Bitcoin may find technical support around $107,000 and $100,000 — key levels for assessing the strength of the current trend. With limited economic data expected amid a potential government shutdown and a divided Fed committee, investors are treading carefully. For now, cryptocurrencies remain on the sidelines, waiting for a renewed signal of confidence.

Andrea Pelucchi