Federal Reserve Chairman Jerome Powell will deliver a keynote address on the U.S. economic outlook and monetary policy at the National Association for Business Economics (NABE) annual meeting in Philadelphia on Tuesday.
The speech, titled “Economic Outlook and Monetary Policy,” comes at a volatile time for global markets, reeling from renewed trade tensions between the United States and China and sharp corrections in digital assets.
Powell’s remarks could influence expectations around interest rate cuts and broader monetary policy, potentially determining whether the current crypto downturn deepens or stabilizes.
Last week, President Donald Trump reignited trade tensions with Beijing by announcing plans to impose 100% tariffs on all Chinese goods imported into the United States starting November 1.
The announcement shook markets around the world, with the total crypto market capitalization dropping by over $125 billion in a matter of hours.
Bitcoin, which had climbed above $122,000 earlier in the week, plunged below $105,000 following Trump’s announcement and briefly fell below $102,000 on Saturday.
Ethereum fell almost 20% in the same window, while Solana, XRP, and BNB saw losses between 12% and 18%.
The sharp decline triggered massive liquidations on the stock markets. Data from CoinGlass showed that more than 1.66 million traders were wiped out in 24 hours, resulting in the liquidation of $19.33 billion in positions.
Bitcoin and Ethereum alone account for nearly $10 billion of these losses, making it one of the most severe deleveraging events of the year.
Additionally, the Crypto Fear & Greed Index plunged from a “Greed” level of 64 on Friday to 27 (“Fear”) on Saturday, its lowest level in six months.
According to Santiment, Friday’s selloff wasn’t just about tariffs.
The analytics firm said retail traders were quick to “rationalize” the economic slowdown by blaming the U.S.-China standoff, but that 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 a crowded market heavily skewed toward long exposure.
Analysts believe Powell’s upcoming remarks could either worsen or stabilize the current market turmoil. Traders are closely watching any indication on the timing and magnitude of potential interest rate cuts.
Adding to the uncertainty, the Federal Reserve is expected to cut interest rates by 25 basis points in October and December, with futures markets showing probabilities of 97% and 89%, respectively.
