Powell Signals Possible Rate-Cut Pause; Bitcoin Pulls Back from $94K High
Jerome Powell’s remarks on Wednesday hinted that the Federal Open Market Committee might pause plans to cut interest rates, sending market expectations for a January rate cut lower. Equities and risk assets softened as traders repriced the timing of easing, and Bitcoin dropped from its intraday peak after earlier trading as high as $94,000. The comments undercut the momentum behind the crypto rally and prompted short-term profit-taking.
Why it matters: a delay in rate cuts keeps borrowing costs higher for longer and can reduce liquidity that has supported risk assets, including crypto. Traders will be watching upcoming data and Fed commentary for clearer signals on the path of policy; any further hawkish tilt could limit upside for Bitcoin and push investors to re-evaluate exposure ahead of the January FOMC meeting.