TLDR:
- Powell’s FOMC speech could guide Bitcoin and Ethereum price action as traders wait for clarity on rate cuts.
- Crypto investors expect dovish remarks as labor market weakens, boosting odds of another cut later this year.
- Hawkish signals on inflation could trigger sell pressure across risk assets including Bitcoin and Ethereum.
- Traders focus on GDP outlook and timeline for cuts to gauge crypto market momentum after today’s decision.
Crypto markets are on alert as the Federal Reserve prepares to announce its latest policy decision.
Bitcoin and Ethereum traders are closely watching Jerome Powell’s comments for signs of where interest rates go next. Market sentiment leans cautious after recent volatility, but traders see room for sharp moves in either direction.
Analysts say Powell’s tone could swing risk assets within minutes. The focus is on whether the Fed signals more easing or keeps rates steady for longer.
Dovish FOMC Guidance Could Boost Crypto Prices
CryptoBusy noted that markets often rally when Powell signals a commitment to further cuts.
FOMC DAY! WHO'S READY? 🚨
Market sentiment today is cautiously optimistic.
Things to keep an eye on:
– Sell the news event.
Here's my Bullish vs. Bearish forward guidance from Fed chair Powell for Crypto:
🟢 BULLISH:
• Clear Commitment to Further Rate Cuts: If Powell… pic.twitter.com/5ppjJ8jLdA
— CryptoBusy (@CryptoBusy) September 17, 2025
Comments pointing to labor market weakness or downside employment risks are usually seen as supportive for risk assets. Traders are also listening for Powell to describe recent inflation as temporary. That would suggest the Fed may not tighten policy again soon.
A softer tone on growth and a pledge to act “as needed” can encourage buying.
Removing restrictive frameworks and shifting toward a neutral stance often unlocks demand for digital assets. This setup historically benefits Bitcoin and Ethereum, which have tracked closely with liquidity expectations.
Daan Crypto Trades reminded followers that Powell’s dovish speech at Jackson Hole in August triggered a sharp crypto pump. While those gains have partly retraced, traders say today could see similar volatility if Powell leans dovish again.
Last time we heard Powell talk during the Jackson Hole Symposium, he took a dovish stance and set the door open for the September rate cut and more.$BTC & $ETH pumped hard. These candles have since seen a retrace but it does show how much the market loves to hear Powell talk… pic.twitter.com/F6rItqP8je
— Daan Crypto Trades (@DaanCrypto) September 17, 2025
Hawkish Signals May Trigger a Selloff
On the other hand, Powell warning that rates will stay elevated could hurt crypto prices. CryptoBusy added that a “higher for longer” message often sparks sell pressure across markets. Lack of a clear timeline for future cuts might push traders to de-risk quickly.
Focus will also be on GDP forecasts. A sharp downward revision would imply economic slowdown, opening the door to more cuts. Yet it could also raise concerns about recession risk. Crypto markets often react sharply when uncertainty around growth increases.
Traders expect price swings not just today but through the week as markets digest projections. With job market data slowing and tariff-driven inflation contained, analysts say Powell faces a delicate balance.
