Bitcoin News Today: Powell's Speech Holds the Keys to Crypto's Next Move as Bitcoin and Markets Await Clarity

Bitcoin and Ethereum led a broad crypto market decline ahead of Federal Reserve Chair Jerome Powell's upcoming speech, with both assets experiencing heightened volatility amid shifting investor sentiment and macroeconomic uncertainty. On October 9, 2025, Bitcoin (BTC) dropped over 1% to $121,500, falling below its 200-hour moving average, while Ethereum (ETH) retreated by 3.2% to $4,300. The downturn followed a sharp intraday rebound after Powell hinted at potential rate cuts during his Jackson Hole address, which triggered over $375 million in crypto derivatives liquidations, primarily from short positionsBitcoin and Ether's Swift Spike Prompts $375M in Crypto Futures^[1]. The U.S. Dollar Index (DXY) climbed to 99.10, its highest since August 1, exacerbating pressure on dollar-denominated assets like Bitcoin and goldBTC Slips Below Key Support as Dollar Strengthens Ahead of Powell’s Speech^[2].

The Federal Reserve's September FOMC meeting minutes revealed a divided outlook on the timing and scale of rate cuts, with officials united on the need for easing but cautious about inflation risks and the U.S. government shutdown's impact on data availability. Powell's upcoming remarks at the Community Bank Conference on October 9 were closely watched for signals on monetary policy, with traders anticipating a 25-basis-point cut to bring the federal funds rate to 3.75–4.00%FOMC Meeting Today [LIVE] Updates - Coinpedia^[3]. The shutdown delayed critical economic data, such as the September jobs report, leaving the Fed "flying blind" and complicating its assessment of labor market and inflation trendsCould Crypto and Stocks Face a Major Correction if This^[4].

Market reactions highlighted the dual pressures of liquidity shifts and speculative positioning. Bitcoin's brief rebound to $125,700 earlier in the week, driven by dovish Fed expectations, was followed by a pullback as investors unwound leveraged long positions. Ethereum faced steeper losses, with $150 million in ETH futures liquidated during the post-Jackson Hole rallyBitcoin and Ether's Swift Spike Prompts $375M in Crypto Futures^[1]. Altcoins lagged, though lido (LDO) and ethena (ENA) saw gains after the SEC's staking rule clarificationsBitcoin and Ether's Swift Spike Prompts $375M in Crypto Futures^[1]. Meanwhile, crypto ETF inflows reached $426 million on October 8, extending a week-long trend of robust demandBTC Slips Below Key Support as Dollar Strengthens Ahead of Powell’s Speech^[2].

The U.S. dollar's strength played a pivotal role in the selloff. A stronger greenback typically reduces the appeal of non-yielding assets like Bitcoin, as evidenced by gold's temporary dip to $4,000 per ounceBTC Slips Below Key Support as Dollar Strengthens Ahead of Powell’s Speech^[2]. Analysts noted that Bitcoin's performance is increasingly tied to macroeconomic cycles, with rate cuts historically boosting risk-on sentiment. However, persistent inflation concerns and a fragile labor market limited the extent of the rally. The 180-day call-put skew on Deribit turned negative 0.42, the lowest since June 2023, signaling rising demand for put options as traders hedged against downside risks.

Looking ahead, the market braces for Powell's speech and the October 28–29 FOMC meeting. A dovish tone confirming rate cuts could reignite bullish momentum, while a hawkish pivot or delayed easing could trigger further corrections. Institutional investors are adopting hedging strategies, including put options and stablecoin allocations, to mitigate potential volatility. The crypto market's sensitivity to liquidity shifts and policy signals underscores its evolving role as a barometer for global monetary conditions. As Powell prepares to address market participants, the outcome of his remarks will likely dictate the trajectory of Bitcoin, Ethereum, and broader risk assets in the coming weeks.