Jerome Powell Speech Indicates Rate Cuts and Crypto Pump

October 14, 2025 — Federal Reserve Chair Jerome Powell Speech at the National Association for Business Economics (NABE) meeting has sent shockwaves through global markets. It is potentially triggering a fresh wave of optimism for risk assets. The Jerome Powell speech, widely viewed as dovish, reinforced expectations for continued rate cuts and hinted at an imminent end to quantitative tightening (QT).

Bitcoin, which dipped to $110,200 ahead of the remarks, surged more than 3% to $12,500, while Ethereum climbed 2.5% to $3,850. Altcoins followed suit—Solana gained 4%, and total crypto market capitalization added $150 billion in hours. Powell’s call for “firmer growth” and acknowledgment of “labor market softness” reassured investors that the Fed remains focused on maintaining liquidity.

Market analysts now assign a 97% probability of another 25-basis-point rate cut at the upcoming October meeting as per Fed WatchData. Traders interpret the tone as an official green light for risk-on assets, echoing the liquidity-driven rallies of 2020 and 2023.

Jerome Powell Speech and Supercharge Liquidity

Powell’s reaffirmation that “the labor market justifies September’s rate adjustment” calmed fears of hawkish pivots. He emphasized that inflationary pressures from tariffs were “manageable” and that maintaining employment stability outweighed short-term inflation risks.

The dovish tone lifted sentiment across traditional and digital markets alike. Analysts at Coinpedia noted that similar remarks earlier this year preceded a 6% Bitcoin rally and 4% rise in Ethereum. “Clear dovishness could push BTC toward $115,000,” commented CoinCentral strategists, citing lower funding costs and potential institutional inflows.

Whale data from Crypto.news confirms large short positions on XRP and DOGE were flipped long within hours.

Labor Focus and Shutdown Risks Drive Macro Tailwinds

Powell’s speech also touched on the broader economic backdrop. They are referencing the partial government shutdown that delayed data releases such as September CPI. Relying on private indicators, he noted that job gains have slowed to under 30,000 monthly. This is reinforcing the case for accommodative policy.

The 4.3% unemployment rate underscores the Fed’s priority shift toward employment protection. For crypto markets, this easing bias translates to a “debasement trade” narrative—where Bitcoin and digital assets serve as hedges against monetary expansion.

Institutions including J.P. Morgan now project continued cuts into 2026, which could amplify DeFi yields, RWA token adoption, and NFT liquidity cycles. On X, @ImCryptOpus wrote, “Powell’s words will spark a rally—grab the surge while it heats up,” echoing the fast-spreading sentiment across crypto Twitter.

Bullish Horizon: Alt Season Reloads Under Fed Tailwind

Despite Powell’s caution that “there’s no risk-free path,” markets have embraced his remarks as a green light for renewed risk appetite. Bitcoin is now targeting $115,000 resistance, with memecoins like PEPE up 5% and small-cap alts riding on risk-on momentum.

Macro analysts suggest the federal funds rate could drop to 3.6% by year-end, setting up ideal conditions for extended alt season. Traders like @Kakadefiweb3 urged followers to “buckle up for liftoff,” while Ash Crypto forecasts a wave of breakouts among penny-cap tokens as liquidity cascades down the crypto curve.

The Jerome Powell speech has done more than move markets—it has reignited belief in the bull run’s longevity. With liquidity expansion, risk sentiment, and policy alignment converging, Powell’s dovish tone may well mark the starting gun for crypto’s next major rally.