Bitcoin Falls to $95K as Fed’s Powell Warns of Tighter Policy

The cryptocurrency market is experiencing a downturn after Federal Reserve Chairman Jerome Powell warned of a prolonged tight monetary policy. As a result, Bitcoin (BTC) fell to $95,976, with altcoins following suit as investors react to macroeconomic uncertainty.

With upcoming U.S. inflation data expected to shape monetary policy expectations, crypto traders are bracing for further market volatility.

Crypto Market Overview: A Mixed Trend

Despite the price declines, trading activity remained high, signaling increased market uncertainty.

📉 Total market cap fell 1.82%, now standing at $3.14 trillion
📈 Trading volume surged 8% to $105.57 billion, despite selling pressure
📉 Bitcoin (BTC) dropped 2% in the last 24 hours, currently at $95,389
📉 Ethereum (ETH) fell to $2,612, while Solana (SOL) dipped to $195
📉 Dogecoin ($0.252805), Shiba Inu, PEPE, TRUMP, and BONK also posted losses

Market sentiment remains cautious, with traders eyeing inflation data and Fed policy updates as key market drivers.

Macroeconomic Uncertainty: Will Inflation Drive More Losses?

The upcoming Consumer Price Index (CPI) and Producer Price Index (PPI) reports will be critical in determining market direction.

🔹 Powell’s speech hinted at a prolonged tight monetary policy, suggesting continued pressure on risk assets like cryptocurrencies.
🔹 Bitcoin liquidations hit $44 million, while Ethereum saw $30.23 million in forced sell-offs.
🔹 XRP recorded $6.05 million in liquidations, mirroring similar downturns in Solana and other altcoins.

In his statement, Powell cautioned:

“Views on tightening monetary policy may indicate pressure on risk assets.”

With interest rates unlikely to be lowered soon, investors are hesitant to take on high-risk assets, including Bitcoin and altcoins.

Top Gainers and Biggest Declines

Despite the market-wide slump, a few tokens managed to post gains:

✅ Virtuals Protocol, Sonic, and FTX Token each surged 5% in the last 24 hours

Meanwhile, the biggest losers included:

❌ Onyxcoin (-9%)
❌ Ethena (-9%)
❌ JasmyCoin (-6%)

With market sentiment fragile, investors are watching support levels to determine whether a rebound or further decline is ahead.

Conclusion: A Market in Waiting Mode

As the crypto market reacts to Powell’s stance, traders remain on edge awaiting key inflation data.

📌 The next CPI and PPI reports will determine whether Bitcoin holds $95K or faces further downside pressure.
📌 Altcoins are struggling to maintain support, making the next few days critical for market stability.

For now, Bitcoin remains at $95K, while traders prepare for macroeconomic shifts that could reshape market sentiment in the coming weeks.