US Fed Chair's Speech Boosts Crypto Market, Bitcoin and Ethereum Rise

The cryptocurrency market is up today with a 2.3% increase in market capitalization to $3.98 trillion. 95 of the top 100 coins have appreciated, with Bitcoin up 0.8% to $112,676 and Ethereum up 3.9% to $4,159. Markets are reacting to the US Fed Chair's speech on Tuesday, with traders positioning for upside. Crypto market sentiment has dropped into the fear zone.

The cryptocurrency market is up today with a 2.3% increase in market capitalization to $3.98 trillion. Ninety-five of the top 100 coins have appreciated, with Bitcoin up 0.8% to $112,676 and Ethereum up 3.9% to $4,159. Markets are reacting to the U.S. Federal Reserve Chair Jerome Powell's speech scheduled for Tuesday, with traders positioning for upside. Crypto market sentiment has dropped into the fear zone.

Powell's remarks, titled "Economic Outlook and Monetary Policy," are expected to influence expectations around interest rate cuts and broader monetary policy, potentially determining whether the current downturn in crypto worsens or stabilizes. The speech comes at a volatile time for global markets, reeling from renewed U.S.-China trade tensions and sharp corrections in digital assets.

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 1. This 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 Saturday. Over 1.66 million crypto traders were liquidated as the market experienced a sharp downturn, wiping out $19.33 billion in positions, according to a CryptoRank report.

According to Santiment, Friday’s sell-off was not just about tariffs. The 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 positions. Analysts at The Kobeissi Letter agreed, describing the event as a "forced unwind" in an overcrowded market heavily biased toward long exposure .

Analysts say Powell’s upcoming remarks could either deepen or stabilize the current market turmoil. Traders are watching closely for any guidance on the timing and size of potential interest rate cuts. Adding 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 U.S. economy. His 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 sentiment .