Fed Chair Jerome Powell’s Speech Tomorrow Could Trigger a Crypto Market Crash – Here’s What to Expect

Federal Reserve Chair Jerome Powell is set to deliver a keynote speech on the ￰4￱ outlook and monetary policy at the National Association for Business Economics (NABE) annual meeting in Philadelphia on ￰5￱ speech, titled “Economic Outlook and Monetary Policy,” comes at a volatile time for global markets reeling from renewed U. S.–China trade tensions and sharp corrections in digital ￰6￱ SPEECH TOMORROW EXPECT VOLATILITY ￰7￱ — 0xMarioNawfal (@RoundtableSpace) October 13, 2025 Powell’s remarks could influence expectations around interest rate cuts and broader monetary policy, potentially determining whether the current downturn in crypto worsens or ￰8￱ Markets Brace for Powell’s Speech After Trump Tariff Turmoil Last week, President Donald Trump reignited trade tensions with Beijing by announcing plans to impose a 100% tariff on all Chinese goods imported into the United States starting November ￰9￱ announcement rattled markets worldwide, with the total crypto market cap plunging by over $125 billion within hours.

Bitcoin, which had climbed above $122,000 earlier in the week, plunged below $105,000 following Trump’s announcement and briefly dipped under $102,000 on ￰10￱ 1.66 million crypto traders were liquidated as the market experienced a sharp downturn, wiping out $19.33 billion in positions. #Trump #Bitcoin ￰0￱ — ￰11￱ (@cryptonews) October 11, 2025 Ethereum fell nearly 20% during the same window, while Solana, XRP, and BNB recorded losses between 12% and 18%. The sharp decline triggered massive liquidations across ￰12￱ from CoinGlass showed over 1.66 million traders were wiped out in 24 hours , resulting in $19.33 billion in liquidated ￰13￱ and Ethereum alone accounted for nearly $10 billion of those losses, making it one of the year’s most severe deleveraging events.

Additionally, the Crypto Fear & Greed Index plunged from a “Greed” level of 64 on Friday to 27 (“Fear”) on Saturday, its lowest in six ￰14￱ Fear and Greed Index crashed from 64 to 27 after Trump’s 100% tariff shock — over $19.33B liquidated and $1T erased from the market in three ￰15￱ crash ahead? #Bitcoin #Ethereum ￰1￱ — ￰16￱ (@cryptonews) October 11, 2025 According to Santiment, Friday’s sell-off was not just about ￰17￱ analytics firm said retail traders were quick to “rationalize” the downturn by blaming the U. S.–China standoff, but deeper structural factors were at play, such as excessive leverage and overextended long ￰18￱ at The Kobeissi Letter agreed, describing the event as a “forced unwind” in an overcrowded market heavily biased toward long ￰19￱ say Powell’s upcoming remarks could either deepen or stabilize the current market ￰20￱ are watching closely for any guidance on the timing and size of potential interest rate ￰21￱ to the uncertainty, the Federal Reserve is expected to cut interest rates by 25 basis points in both October and December, with futures markets showing 97% and 89% odds, respectively.

Powell’s Tuesday address may clarify the central bank’s view on inflation, growth, and the impact of tariffs on the ￰22￱ tone could either reassure markets or exacerbate fears of an economic slowdown. A more hawkish tone from Powell, suggesting rates will stay higher for longer, could reignite selling pressure across crypto and equities, both of which have traded increasingly in sync with broader risk ￰23￱ and Ether Rebound as Trump Signals Softer Tone Toward China While markets partially rebounded on Monday, the recovery remains ￰24￱ rose 4.5% to $115,459, while Ether gained 11.3% to $4,161 after Trump and Vice President JD Vance struck a softer tone on Sunday , indicating openness to trade talks with Beijing.

“Don’t worry about China, it will all be fine,” Trump posted on Truth Social, calling Chinese President Xi Jinping “highly respected” and suggesting the ￰25￱ to “help, not hurt” China. BREAKING: President Trump says “don’t worry about China, it will be all fine.” Trump says China’s President Xi “just had a bad moment.” There it is, the Sunday pre-futures open post we’ve been waiting for. ￰2￱ ￰26￱ — The Kobeissi Letter (@KobeissiLetter) October 12, 2025 Still, tensions remain ￰27￱ has warned that it will retaliate if Washington enforces the 100% tariffs. China’s commerce ministry said the country “does not want a trade war but is not afraid of it,” vowing to “take resolute measures” to protect its interests.

Meanwhile, in commodities, gold and silver extended their rallies as investors sought ￰28￱ hit $4,200 per ounce, while silver touched $51.70, both reaching record ￰29￱ of America raised its 2026 gold price forecast to $5,000, citing persistent geopolitical risks, strong central bank demand, and growing expectations for Fed rate ￰30￱ April, President Donald Trump imposed sweeping tariffs of up to 125% on Chinese imports after unveiling a broader policy that established a 10% baseline tariff on all imports and introduced reciprocal ￰31￱ retaliated immediately with equivalent measures, warning it would “fight to the end.” Crypto markets rallied sharply after the United States and China announced an agreement to temporarily reduce tariffs on each other’s goods. #Bitcoin #Ethereum #China ￰3￱ — ￰32￱ (@cryptonews) May 12, 2025 In May, the United States and China agreed to temporarily roll back their escalating tariffs , offering a brief reprieve to markets rattled by months of economic ￰33￱ deal, announced in a joint statement from Geneva, grants both sides a 90-day window to negotiate further ￰34￱ the agreement, Washington will slash tariffs on Chinese imports from 145% to 30%, while Beijing will cut its own levies on ￰35￱ from 125% to 10%.