Mixed signals from the Fed: what does it mean for crypto markets?

Powell gave a speech at the Greater Providence Chamber of Commerce on Tuesday and outlines the economic prospects of the Central Bank, which could heavily influence the risk-to-assets such as crypto.

He said This GDP growth has been moderated to around 1.5% in the first half of the year, at 2.5% last year, and unemployment remains low with 4.3%. Inflation figures were also pessimistic, recently rising to 2.9% for Kern PCE, which is above the target of the FED.

There were mixed signals about whether the FED introduced a new monetary policy cycle.

“Our policy is not on a predetermined course. We will continue to determine the correct attitude based on the incoming data, the evolving prospects and the balance of risks.”

Still fed on the fence

Powell emphasized that “risks for inflation are tilted up in the short term and risks for the disadvantage of being a disadvantageous situation.” He also described the current policy position as ‘still modest restrictive’, which suggests space for further relaxation as the conditions justify.

The Dovish Pivot with persistent tariff reductions in the general risk assets such as crypto, because lower rates reduce the opportunity costs to keep non-return assets. Powell, however, warned about the fall of rates too fast. Upgrain inflation risks of rates can pause or reverse the relaxation cycle, which would be negative for crypto.

“If we relieve too aggressively, we cannot finish the inflation job and we will have to reverse the price later to fully restore the 2 percent inflation.”

Current CME Futures -S -Markets to predict A 92% chance that another 0.25% was reduced during the next meeting of the FED at the end of October.

Tom Lee from Fundstrat remained optimistic and stated that the Fed never said that assets such as shares were priced attractively, so the speech should not be considered an ominous signal.

Fed Chair Powell spoke at a conference today and some investors no longer have this commentary

Powell:
“I think if you look at some prices, they are increased compared to historical levels … We do not focus on any level of prices for certain financial assets. We have no …

– Thomas (Tom) Lee (not drummer) fsinsight.com (@fundstrat) September 23, 2025

Crypto -Keep support

The emphasis of the FED on “No Preset Course” introduces uncertainty that cryptomarkets usually do not like. Markets have moved very little in the last 24 hours after their $ 200 billion malaise earlier this week.

The total capitalization has steadily kept $ 3.96 trillion, which is held in a range -bound channel that started mid -July. Bitcoin also fell to $ 111,600 in the late Tuesday trade, but succeeded in recovering the support level of $ 112,000 on Wednesday morning in Asia.

Ether is weakened, falls below $ 4,200 and is unable to recover in that level at the time of writing. However, crypto analysts remained optimistic.

Summary of the Powell speech from Fed:

● Rates will only cause one -off price increases over several quarters.

● Fed ensures that the rates do not stimulate continuous inflation

● Aadmost risks for employment have risen

● Long -term inflation expectations in line with 2% target

● … pic.twitter.com/mtgaiel9ca

– Ash Crypto (@ashCryptoreal) September 23, 2025