Everything you need to know for Bitcoin and crypto ahead of Jerome Powell’s upcoming FOMC meeting
Markets await Jerome Powell's remarks for signals on the Fed's rate path, which heavily influences Bitcoin and crypto via real yields and ETF flows.Summary
The market is keenly focused on Jerome Powell's upcoming comments ahead of the Federal Open Market Committee (FOMC) meeting, viewing it as the last major macroeconomic checkpoint before the decision. Bitcoin experienced significant outflows from US spot ETFs in November, dropping nearly 20% from its peak, as macro conditions remain fragile with thin liquidity.
Three key questions dominate expectations: whether Powell validates the market's near-certain bet on a December rate cut, how he balances inflation against slowing growth, and what he signals about the path beyond December, especially following the end of quantitative tightening (QT) on December 1st. Bitcoin's price is highly sensitive to monetary policy, trading as a high-beta macro risk where falling real yields support BTC and rising yields cause price declines and ETF redemptions.
Three paths are possible based on Powell's tone: a dovish surprise would likely lead to falling real yields and a relief rally for Bitcoin; a neutral stance would result in choppy price action dictated by internal crypto positioning; and a hawkish tilt, playing down a December cut, could trigger another leg lower for BTC, mirroring the October drawdown.
(Source：CryptoSlate)