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Bitcoin crashes below $86.5K, wiping $144B as traders react to Fed Chair Powell’s speech; altcoins ETH, XRP, and SOL follow the sell-off.
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China FUD, whale moves to USDT, and high BTC leverage fuel crypto crash; markets await Powell’s hints on rate cuts and future Fed policy.
Bitcoin Price crashed ahead of Federal Reserve Chair Jerome Powell’s highly anticipated speech today. The crypto market saw a massive sell-off, and BTC Price fell below $86,500, wiping out over $144 billion from the total crypto market in just a few hours. Ethereum, XRP, and Solana followed suit, pulling altcoins down with Bitcoin.
The crypto crash comes as investors brace for Powell’s remarks, scheduled for 4:00 pm ET. Traders are watching closely because his comments could impact the next move of Bitcoin and altcoins for the next few months.
Why Crypto is Crashing Today?
Several factors contributed to the sell-off:
- China FUD – China reaffirmed its opposition to cryptocurrencies, creating uncertainty even though it remains a top contributor to Bitcoin mining.
- Whales Moving to USDT – Large investors reduced exposure ahead of Powell’s speech to avoid risk.
- High Bitcoin Leverage – Excessive leveraged long positions triggered mass liquidations as BTC fell.
- Seasonal Trends – Historically, a weak November often leads into early December selling, and the typical Sunday rally failed to appear, signaling weak momentum.
In just five hours, Bitcoin dropped from $91,300 to $86,300, removing roughly $99.3 billion from BTC’s circulation, while altcoins accounted for the remaining $40 billion in losses.
What Powell’s Speech Today Could Mean for Crypto?
Tonight, Powell will discuss the economy, inflation, unemployment, and future monetary policy. His speech comes just as the Federal Reserve officially ends Quantitative Tightening (QT) after more than three years. Historically, the end of QT has led to rallies in crypto, stocks, and bonds.
Markets are watching for hints about:
- Future interest rate cuts
- The potential restart of Quantitative Easing (QE)
- The Fed’s stance on unemployment and inflation
If Powell signals room for rate cuts, the crypto market could see a relief rally. On the other hand, if he focuses on ongoing inflation and says rates won’t be cut much, Bitcoin and altcoins could fall further.
Global economic conditions also play a role. Major economies like Japan, China, and Canada are easing monetary policies. Any alignment from the Fed could boost global liquidity expectations, with crypto often reacting first.
FED Rate Cuts
Recent data suggests markets are partially pricing in a December rate cut, with odds for a 25-basis-point cut jumping to 87%. Today’s PCE, ISM, ADP, and jobless claims reports, combined with Powell’s comments, will likely determine whether that relief rally strengthens or fades.
For now, the crypto market remains on edge. December 1 could mark a turning point, setting the tone for Bitcoin and altcoins in the weeks ahead.
