Bitcoin tumbled beneath 112,000 on Tuesday as traders braced for Fed Chair Jerome Powell’s upcoming speech, hoping his remarks will offer clarity on US monetary policy.
It was last down nearly 3% to $111,856. The broader crypto market fell sharply, with total market cap sliding 3.2% to $3.8 trillion. Ethereum dropped 4% to $4,012, BNB plunged 10% to $1,205 and XRP slipped 5.5% to $2.47.
Markets approach Powell’s speech amid sharp swings, fueled by renewed US-China trade tensions and steep declines in digital asset prices.
Powell is scheduled to speak on the economic outlook and monetary policy at the NABE Annual Meeting in Philadelphia on Tuesday. Analysts expect his tone to sway sentiment on rate cuts and whether the crypto descent deepens or stabilizes.
Last week, President Donald Trump escalated tensions by announcing plans to impose 100% tariff on all Chinese goods imported to the US starting Nov. 1. The move triggered massive market turmoil, wiping more than $125b from global crypto valuations in hours.
Markets found some footing on Monday after Trump softened his tone on China. Still, the shock left traders on edge and primed for further swings.
Lukman Otunuga, senior market analyst at FXTM, said the reaction “underscores just how sensitive investors remain to political risk and trade uncertainty.” He added that the US-China tensions and a dragging government shutdown could keep markets jittery.
Kevin Lee, chief business officer at Gate, expects downward pressure to persist near term as geopolitical risks and tariffs weigh on sentiment. He sees the Fed’s expected rate cut on Oct. 28-29 as a possible turning point to ease conditions for risk assets.
Yannik Schrade, CEO of Arcium, argued that large liquidations like the weekend’s $19b wipeout act as a market filter, exposing weaker leveraged positions while drawing focus to utility-driven projects.
He cited Zcash’s relative resilience and Umbra’s $155m raise in confidential DeFi infrastructure as signs of focus amid volatility.
Attention now turns to Powell, whose remarks could decide whether crypto finds relief or slides deeper into decline.
