2025-12-30 23:26:34

Fed Chair Powell Signals Rates May Stabilize or Move Lower – What Crypto Traders Should Care About

Powell's recent comments hint at a potential pause in rate hikes or the beginning of a cutting cycle. For the broader financial ecosystem, this signals a shift in monetary policy direction.

Why does this matter? Interest rates are a major lever affecting capital flows. When rates stay elevated, investors seek yield elsewhere. When they soften, liquidity typically returns to riskier assets—including crypto. We've seen this pattern play out before: lower rates tend to fuel appetite for Bitcoin, Ethereum, and alternative assets as investors rebalance portfolios.

The market is now parsing every Fed communication for clues. Key things to monitor: the next FOMC meeting, inflation data, and employment figures. These will shape whether Powell's words translate into action.

For traders and long-term holders alike, this pivot—if confirmed—could mark a turning point in market conditions. The correlation between macro policy and digital asset performance remains undeniable.

BTC1.14%

ETH0.8%

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HallucinationGrower

· 7h ago

Here we go again, hyping about rate cuts, always the same routine Powell's mouth is really just an ATM, one word and the coin price skyrockets, hilarious Let's wait and see, probably just talk and no action If a rate cut really happens, this wave might truly take off... but I bet five bucks they'll just print more money Staring at the Fed's mouth every day is less effective than reading the K-line quickly Every time they say it's a turning point, but it turns out the same, I'm exhausted Is it real? If they deceive me again, I'm out Liquid reflow = is it time for us to go all-in again? Don't overthink it, just follow the short-selling funds to buy the dip Feels like this round is different, but who dares to go all in?

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SnapshotLaborer

· 7h ago

Once the interest rate cut cycle begins, hot money will inevitably flow back, and we must seize this rhythm. --- Powell is starting to throw smoke screens again; we still need to see actual actions. --- Finally, I’ve been waiting for this statement—my BTC is about to take off. --- Easing of interest rates = liquidity returning; everyone understands this logic, it all depends on whether the data matches. --- Every time the Fed makes a statement, I have to study it for a long time—it's a bit tiring... but low interest rates are indeed beneficial for the crypto market. --- Don’t just listen to the statements; we still need to wait for the FOMC to implement them to be meaningful. --- Once the expectation of a rate cut emerges, the price of coins reacts instantly; the market has already priced it in. --- How many times have we seen signals of this kind of shift? And the result? It’s better to be cautious. --- I believe in the logic that liquidity returning to riskier assets, but timing is the key.

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FOMOrektGuy

· 7h ago

Expectations of rate cuts always lead to a rise in prices, this trick is so old now haha --- Powell is hinting again, anyway, no matter how they move, we get cut --- Wait, will liquidity really return to the crypto world? I feel this time is different --- Back to watching the FOMC, it's really exhausting, might as well go all-in on BTC directly --- Every time they say "turning point," wake up everyone, macro policies are not万能 --- Lower interest rates are good for us, but only if they really cut, words don't count --- Here they come again, using the phrase "undeniable correlation" as usual

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FadCatcher

· 7h ago

Once the interest rate cut cycle is confirmed, this rebound might really come Powell's rhetoric is more sensitive than the market, let's wait and see what the FOMC says Here we go again, every time they say liquidity will return to risk assets, we're tired of hearing this Can BTC really take off if interest rates go down? It mainly depends on whether employment data cooperates After such a long verbal battle, it's better to just cut interest rates directly Powell, stop just talking and not acting; wait until inflation truly settles down before speaking Will this replay the madness of 2021? I'm a bit hopeful but also a bit scared Easing liquidity is a good thing, but I'm worried it might just be another round of false fire The relationship between interest rate policies and crypto prices—many people have debated this repeatedly, and we're tired of hearing it Waiting for next week's FOMC; right now, it's all just armchair strategizing

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