Bitcoin Plummets on Powell's Comment… $110,000 Level Broken

Powell Dashes December Rate Cut Expectations

Bitcoin Intraday Falls to the $109,000 Range

Investor Sentiment Weakened Despite Announcement to End QT

Bitcoin (BTC) prices fell below $110,000 after hawkish remarks by Jerome Powell, chair of the U.S. Federal Reserve (Fed). This is attributed to sharply weakened investor sentiment as expectations of a December rate cut — which the market had largely treated as a fait accompli — were dashed.

On the 29th (local time), Powell said at the Federal Open Market Committee (FOMC) regular meeting that the policy rate was lowered by 0.25% point to 3.75~4%. However, he took a cautious stance on the possibility of further cuts, saying "it is not a foregone conclusion."

At the press conference, Powell said, "Key indicators such as employment were not sufficiently secured during the shutdown period," and added, "We may need to slow the pace of policy (rate) adjustments. I hope to obtain more data by December."

"More and more Fed members want to delay rate cuts," he continued, adding, "After two consecutive rate cuts, some members are taking a wait-and-see stance. The view that we should wait at least one cycle is spreading."

These remarks ran counter to the signals the market had been expecting. Investors who had been anticipating a December rate cut interpreted them as hawkish and reacted immediately.

Ahead of Powell's press conference, Bitcoin, which had been hovering around $113,000, lost the $110,000 support level immediately after his remarks and fell intraday to the $109,000 range. As of the 30th, Bitcoin had partially recovered losses on the Binance Tether (USDT) market but was still trading around $110,000, about 2% lower than the previous day.

Weakness continued across the crypto market. According to CoinMarketCap, Ethereum (ETH) traded at $3,899.87, down 1.93% from the previous day; XRP traded at $2.53, down 2.74%; and Solana (SOL) fell 1.04% to $192.37.

However, Powell also officially announced the end of asset reduction (QT) that day, leaving some expectations for increased market liquidity. He said, "We have decided to end QT as of December 1," explaining, "Over the past three and a half years, the balance sheet has decreased by $2.2 trillion, and its share relative to nominal GDP has fallen from 35% to 21%." He added, "We now believe we are close to sufficient reserves," and said, "From December, we will maintain the balance sheet size for a period and transition to the next stage of normalization while reserves gradually decline."

Meanwhile, market attention is turning back to the U.S.-China summit. After Powell's hawkish remarks caused Bitcoin to plunge, investors are eyeing a trade deal as a potential catalyst for a price rebound. The meeting between U.S. President Donald Trump and Chinese President Xi Jinping is scheduled to take place at 11 a.m. that day at the 'Naraemaru' ceremonial reception facility at Gimhae Airport Air Force base.