Bitcoin Dips Below $112K Ahead of Powell’s Speech — Markets Brace for a Volatility Storm

As Jerome Powell prepares to speak in Philadelphia, crypto investors are treading carefully. Bitcoin’s drop to $112K underscores just how fragile risk sentiment remains amid trade tensions and global uncertainty.

⚡ Quick Hits

• 📉 BTC price: below $112,000
• 🏦 Trigger: upcoming Powell address at NABE Annual Meeting
• 💬 Analysts: tone on rate cuts could swing crypto sentiment
• 💣 Backdrop: Trump’s 100% China tariff threat, global risk-off mood
• 💥 Weekend liquidations: $19B wiped out, exposing leverage overload

💬 Powell’s Words, Market’s Nerves

Bitcoin fell sharply on Tuesday, sliding under $112K as traders braced for Federal Reserve Chair Jerome Powell’s economic outlook remarks in Philadelphia.

The speech comes at a critical juncture — investors are desperate for clarity on interest rates, inflation control, and potential cuts ahead of the October 28–29 FOMC meeting.

“The reaction underscores just how sensitive investors remain to political risk and trade uncertainty,” said Lukman Otunuga, Senior Market Analyst at FXTM.

The sell-off wasn’t just about crypto. Equity futures dipped, Treasury yields climbed, and volatility spiked across risk assets — signaling a broader macro anxiety that’s keeping traders on edge.

🌏 Political Risk Back in Play

Markets are still reeling from last week’s geopolitical shock: Donald Trump’s threat to impose a 100% tariff on Chinese imports starting November 1 — a move that instantly erased over $125 billion from global crypto valuations.

Though Trump later softened his rhetoric, the damage was done. The episode reminded traders how politics and macro headlines now dominate on-chain behavior.

“These moves show how fast sentiment can flip in crypto,” said one analyst. “We’re trading on geopolitics now, not just halving cycles.”

💥 The Fallout: $19 Billion Liquidated

The weekend’s $19B liquidation cascade revealed just how fragile leverage had become. Yet beneath the wreckage, analysts see selective strength — projects with real-world utility, strong communities, and institutional backing held firm.

Kevin Lee, Chief Business Officer at Gate, said short-term pain may persist but expects Powell’s upcoming rate cut to ease macro pressure:

“Markets are cautious now, but a dovish signal from the Fed could reopen the risk window for digital assets.”

Meanwhile, Yannik Schrade, CEO of Arcium, framed the crash as a cleansing event:

“Liquidations act as a filter — they expose weak hands and refocus capital on resilient projects.”

He pointed to Zcash’s stability and Umbra’s $155M raise for confidential DeFi infrastructure as proof that serious builders are thriving even as speculators exit.

🧠 The Bigger Picture: Crypto’s Sensitivity Problem

The recent turbulence highlights a broader truth: crypto may be decentralized, but it’s not detached. Trade wars, central bank policy, and election headlines now move prices as much as any on-chain development.

With leveraged positions still stretched and regulatory uncertainty rising, markets remain hypersensitive to macro signals. Powell’s tone today could decide whether Bitcoin stabilizes — or faces another leg down toward $108K–$106K.

Either way, the message is clear: Crypto isn’t just tech anymore — it’s a macro asset class, wired into every global tremor.

TL;DR

• 📉 Bitcoin drops below $112K ahead of Jerome Powell’s speech
• ⚖️ Markets fear hawkish Fed tone could extend sell-off
• 💣 $19B in liquidations over the weekend exposed leverage risks
• 🌍 Trump’s tariff threats erased $125B in global crypto value
• 🧠 Analysts say rate cuts could revive risk appetite — but volatility rules for now