Powell's speech tonight: what to expect from the crypto markets

The Federal Reserve President Jerome Powell will deliver an important speech tonight at 7:30 PM (local time). Powell’s speech today represents a crucial moment for cryptocurrency traders and traditional investors, as any signals regarding future monetary policy can trigger significant movements in digital asset prices.

Why Powell’s speech today moves the markets

Market attention is focused on every word that will come from the Fed chair. Traders are looking for explicit or subtle indications about the timing of future interest rate cuts and the direction of U.S. monetary policy. Powell is a central figure in decisions that influence not only stock and bond markets but also the entire cryptocurrency ecosystem. When the Fed signals changes in rate policy, effects are quickly reflected in the prices of BTC, ETH, and other digital assets.

Expected volatility and rapid price movements

Traders are preparing for significant price swings immediately following Powell’s speech. Market volatility will depend on the specific content of the address: if the Fed hints at imminent rate cuts, we could see a rally in crypto markets; conversely, signals of restrictive monetary policy might lead to sharp corrections. Monitor major indices like BTC, ETH, and COAI in the coming hours—the fluctuations could be swift and decisive.

Strategies to manage risk during the speech

Discipline is key during high-impact events like Powell’s speech tonight. Here’s how to behave:

• Position management: Ensure your exposures are appropriately sized. Reduce risk if necessary and keep leverage levels controlled.

• Lock in profits: If the market moves in your favor, consider securing gains quickly rather than waiting for further increases.

• Prepare for new opportunities: After Powell’s speech, new trading opportunities will inevitably follow. Stay focused, keep liquidity available, and prepare your strategies for the next market moves.

Remember that during major macro events, the key is conscious risk management. Don’t let excitement or fear drive your decisions—smart trading means planning ahead and following your plans with discipline.